Nigeria News

Nigeria's Seplat raises $260 mln for ANOH gas plant

LAGOS, Feb 1 (Reuters) - London-listed Nigerian energy company Seplat raised $260 million in debt to finish fundraising for a gas processing plant in Imo state, it said in a statement on Monday.

The Assa North-Ohaji South project (ANOH), with a planned capacity of 300 million standard cubic feet per day, is part of the government’s pledge to develop gas resources for both revenue and cleaner power.

ANOH will process gas captured at Seplat’s OML 53 onshore oil block.

The government’s efforts to spur the capture and development of gas, much of which is still burned as waste, have met with mixed success.

Seplat already supplies some 30% of the gas used for Nigeria’s power generation, and has said it expects a higher proportion of its revenue to come from gas.

“It will help us drive, alongside our government partners, Nigeria’s transition to cleaner, less expensive power generation,” Seplat Chief Executive Roger Brown said of ANOH.

A consortium of seven banks, including Stanbic IBTC Bank Plc, United Bank for Africa Plc and Zenith Bank Plc provided the funding.

ANOH is jointly owned by Seplat and a subsidiary of state oil company NNPC. The plant’s construction cost is now estimated at $650 million. The two stakeholders previously provided a combined $420 million in equity funding.

Seplat expects the first gas by the fourth quarter. (Reporting By Libby George; editing by David Evans)