The African Export-Import Bank (Afreximbank) wants to mobilize $5 billion to develop an LNG production project in Nigeria. Last week, the Bank signed a memorandum of understanding with the Nigerian company UTM Offshore.

The signing of an agreement between Afreximbank and the Nigerian company UTM Offshore provides for the mobilization of 5 billion dollars. A sum that will be used to develop the first floating gas liquefaction plant in Nigeria. Nigeria has decided to place natural gas at the center of its energy strategy. This strategy notably involves the development of liquefaction infrastructures with the support of major financial institutions. The agreement will cover two phases, namely, the initial development phase of the project, which will require the mobilization of 2 billion dollars and the second will absorb the rest.

The plant will be installed offshore on the Yoho block of the OML 104 producing license operated by the joint venture of Mobil Producing Nigeria (operator, 40%) and the public oil company (NNPC), with 60%. It should enter its operational phase in 2026. It will then be the first floating LNG liquefaction plant in Africa operated by a local company.