Stanbic IBTC Infrastructure Fund has announced its investment in the construction of a 20,000 metric tonne Liquified Petroleum Gas (LPG) storage terminal, the largest storage gas facility in Nigeria.
The funding, according to a statement, was provided to AP LPG Limited (a subsidiary of Ardova Plc) under a N12 billion senior debt facility agreement for a term of 10 years.
The project’s scope includes design, construction and operational maintenance of the gas storage terminal. When completed, it will deliver the additional storage capacity required to ease some of the existing bottlenecks in the supply of cleaner energy for domestic use (cooking gas). LPG offers tremendous benefits, including high energy values, low emissions, and eco-friendly fuel.
The state-of-the-art facility consists of four units of 5,000 metric tonnes Horton Spheres, with the capacity to blend variants of LPG available in both the domestic and local markets, to approved regulatory standards for local consumption.
Commenting on the development, Moshood Olajide, Group Chief Financial Officer, AP LPG said: “We are pleased to have Stanbic IBTC Infrastructure Fund support the energy transformation and sustainability efforts that are currently underway at Ardova Plc, which has led us to commission the construction of a 20,000 metric tonne liquified natural gas storage terminal at Apapa”.
“The investment support provided by Stanbic IBTC Infrastructure Fund moves us closer to our clean energy and sustainability goals, as the multiplier effects of this investment will make gas adoption more mainstream. Our vision is to ensure that Nigerians increasingly rely on clean energy for domestic and industrial use. Stanbic IBTC Infrastructure Fund and its select investors have proven to be worthy partners by being at the forefront of contributing to an innovative project, which is important in addressing some of Nigeria’s critical infrastructure problems,” he added.
Dolu Olugbenjo, chief investment officer, Stanbic IBTC Infrastructure Fund said, “We appreciate our investors for trusting us to make the right investment decisions on their behalf. Our robust investment appraisal process means that our investors can expect us to be thorough in our investment decision making, to ensure that they enjoy long term sustainable returns, while making investments which will have positive environmental impact.”
Stanbic IBTC Infrastructure Fund, a division of Stanbic IBTC Asset Management, remains committed to funding infrastructural projects with competitive return profiles, sustainable environmental practices, and a strong multiplier effect on the economy.