NLNG Seeks $1 Billion Loan To Buy Six Ships

Nigeria Liquefied Natural Gas Company (NLNG) is looking to raise $1 billion in international markets to acquire six LNG carrier ships, and is in the process of appointing financial advisers for the deal, the company said on Saturday.

Siene Allwell-Brown, general manager for external relations, told Reuters the operator, which is majority owned jointly by the NNPC and Royal Dutch Shell, held a board meeting on Thursday to discuss the appointment of 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.

It was not yet decided which bank would lead manage the deal, nor from which company they would source the ships. She said did not provide a timetable for when the company expects to close the transaction but said that the loan aims to expand the operations of its shipping subsidiary Bonny Gas Transport Limited, which currently has 24 LNG ships.

NLNG was set up over two decades ago to 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, Ms Allwell-Brown said.

It has a capacity to produce 22 million metric tonnes of liquefied gas a year. It obtains its gas supply from the upstream oil companies and liquefies it for export.