Nigeria National Petroleum Corp. (NNPC) is taking a US$ 2 billion dollar loan in order to unlock capital to push the project forward. The company plans to reduce its stake in the project from 49% to 30%.
LNG Japan, jointly owned by Sumitomo and Sojitz has been offered a 4% stake and Itochu has been offered a 2% stake. A joint venture between Nigeria's Sahara Energy and U.S.-based Sempra Energy has been offered a further 2% as well.
NNPC has secured a US$ 2 billion dollar loan from a consortium led by the Japan Bank for International Co-operation.
"Everyone is looking to invest and we have invited others to join. It is a time everyone is looking to alternatives and the Japanese have been very interested in this project," an NNPC spokesman said.
The project has suffered chronic delays due to a lack of investment as the country is more focused on its crude oil reserves, but hopefully these funds should help get the project moving. Nigeria holds the world’s seventh largest reserves of gas with proven natural gas reserves of 187 trillion ft3, and with natural gas playing an increasingly large role in the global energy mix, the time is ripe to start exploiting them.
A final investment decision on the project is expected in the first quarter of 2012.