Union Bank to finance gas plant with N4 billion loan

Union Bank of Nigeria Plc has signed a N4 Billion agreement to finance Egboama Gas Plant owned by PNG Gas Limited.

The loan facility will provide the required funding for the refurbishment and upgrade of gas plant located in Delta State.

Commenting on the agreement, the Executive Director, Corporate Banking at Union Bank, Emeka Okonkwo said: “Union Bank is pleased to be supporting PNG with the financing of Egboama plant which is expected to produce about 101 tons of liquefied petroleum gas per day. This project will no doubt enhance efforts towards increasing domestic utilization of gas in the country and reducing dependence of oil.”

In addition to producing 101 tons of liquefied petroleum gas per day, the Egboama gas plant is also expected to produce 38 tons of propane gas per day, 750 barrels of natural gas liquids as well as 25 million standard cubic feet of lean gas per day. The lean gas would be piped into the national gas grid to support power generation.

Union Bank is a key player in oil and gas financing and is resolute in promoting and developing industries in the sector as part of its transformation programme.