Nigeria Liquefied Natural Gas Company (NLNG) is trying to raise a $1 billion loan from the international financial market to boost the operations of its shipping subsidiary, Bonny Gas Transport Limited (BGTL).
The company, which currently has 24 LNG ships for its gas exports, hopes to utilise the loan to acquire six new carrier ships, to increase the fleet to 30.
The company’s General Manager, External Relations, Siene Allwell-Brown, told Reuters that its management is in the process of appointing financial advisers for the deal.
A meeting of the company’s board was held last Thursday to discuss modalities for the appointment of financial advisers for the loan process.
“We have contacted global banks from which we will choose a financial adviser who will give us the best option through which we will raise at least a $1 billion loan to acquire six LNG carriers for our operations,” Ms Allwell-Brown said.
She said during the board meeting was however yet to decide which bank would lead the management of the deal, nor from which company they would source the ships.
Ms. Allwell-Brown did not give a definite timetable the company expects to close the transaction, though she said the loan would help expand the capacity of the company’s subsidiary to deliver on its trading contracts.
NLNG was established over two decades ago to help harness Nigeria’s natural gas resources and produce Liquefied Natural Gas and Natural Gas Liquids for export.
The company has long-term supply contracts with buyers in Italy, Spain, Turkey, Portugal and France and also sells on the spot market.
The plant, located in Bonny Island in Rivers State, has an installed capacity to produce 22 million metric tons per annum (MTPA) of liquefied natural gas for exports.