The Nigerian Egboama gas plant has secured a financing worth N4bn (US$20mn) from Union Bank.

The loan facility has a five-year tenor and will support the refurbishment and upgrading of the gas plant, located in Delta State and owned by PNG Gas.

“This project will no doubt enhance efforts towards increasing domestic utilisation of gas in the country and reducing dependence on oil,” says executive director, corporate banking at Union Bank, Emeka Okonkwo.

The gas plant is expected to produce 101 tonnes of liquefied petroleum gas, 38 tonnes of propane gas, 750 barrels of natural gas liquids and 25 million standard cubic feet of lean gas per day. The lean gas will be piped into the national gas grid to support power generation.

A spokesperson for Union Bank says they cannot disclose the names of the other financial institutions involved until they have concluded their approval process.