Falcon Corporation Limited has secured an N19.41 billion facility from the Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF) to develop a 15,000 metric ton Liquefied Petroleum Gas (LPG) storage facility in Nigeria.
According to the company, the facility and a dedicated jetty will be situated in Rumuolumeni, Saipem/Aker Base Road, Port Harcourt, Rivers State, Nigeria.
In a statement seen by BusinessDay, the Project, which has reached an advanced stage, is being carried out in two (2) distinct phases, with the initial phase focusing on the construction of a 10,000 metric ton spherical tank (consisting of 2 tanks, each with a capacity of 5,000 metric tons),
“Also with a dedicated jetty and other associated infrastructure, which is to be followed by the development of an additional 5,000 metric tons of storage at a later date.”
Joe Ezigbo, the managing rirector of the Company, said: “The Project is set to facilitate and enhance more direct procurement and distribution of LPG, which will dramatically lower conventional delivery and storage costs.
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“Beyond economic gains, we anticipate significant social benefits including job creation, income growth, health improvements, and environmental sustainability as our customers and communities transition to cleaner fuel options on a larger scale.”
Operational since 1994, Falcon is one of the leading wholly indigenous integrated players across the Energy value chain in Nigeria, with expertise in delivering world-class energy solutions across the midstream and downstream sectors of the industry. ‘
“The Project is also in line with the Federal Government of Nigeria’s objective of increasing the adoption of LPG as auto fuel and a replacement of diesel for power generation,” said Bolaji Balogun, the chief executive officer of Chapel Hill Denham.
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Funded by debt obtained from NIDF and the Bank of Industry (BOI), coupled with internally generated funds, the Project has now hit a number of critical milestones, with a recorded completion rate of 65 percent as of October 2023, according to the statement. The Project is expected to be completed and commissioned by the fourth quarter of 2024.
Nelson Walter, Falcon’s General Manager, Finance, in addressing the choice of debt provider, stated, “They have shown a depth of understanding of the imperatives for project success and offered a flexible long-term loan repayment structure for Falcon in alignment with this.
“We are extremely delighted to have partnered with NIDF on this groundbreaking Project. ”
Vetiva Capital Management Limited and Chapel Hill Denham Advisory acted as the Financial Adviser on the transaction, while Detail Commercial Solicitors provided legal counsel.
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