NNPC seeks $2bn from Japanese firms to fund Brass LNG


 15 August, 2011, Sweetcrude, ABUJA – The Nigerian National Petroleum Corporation (NNPC) plans to accept a $2 billion loan from a group led by the Japan Bank for International Cooperation to fund its share in the $5 billion Brass LNG project.

NNPC will cut its stake in the proposed liquefied natural-gas project located in the oil-rich Niger River delta to 30 percent from 49 percent, according to a Bloomberg report quoting NNPC spokesman, Dr Levi Ajuonuma.

The decision over the financing of the Brass LNG plant followed a meeting with the Japanese companies last month in Abuja, he said. The others involved in arranging the loan include LNG Japan, Itochu Corporation and Sojitz Corporation, Ajuonuma further said.

Ajuonuma also disclosed that a final investment decision on the plant at Brass in the southeastern Bayelsa state will be taken in the first quarter of 2012. Total SA, Eni SpA and ConocoPhillips each have 17 percent stakes in the project.

NNPC has “offered 4 per cent and 3 per cent to LNG Japan and Itochu respectively,” he also said. A further 2 per cent has been offered to a joint venture between Sahara Group and Sempra Energy.

Nigeria has proven natural gas reserves of 187 trillion cubic feet, according to the Petroleum Ministry.

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