Barely two months after Nigeria LNG Limited raised $1.060 billion for its Trains 4 and 5 expansion project from local and international banks, another consortium of 20 banks will on Friday in London, sign an undertaking to provide $460 million for the company’s wholly owned subsidiary, Bonny Gas Transport Limited, to expand its fleet of LNG carriers.

NLNG needs eight additional vessels to meet the shipping requirements for the Trains 4 and 5 project, also known as NLNG Plus. A contract to charter four ships, with an option to buy after 5 years was signed in December 2001 with Bergesen of Norway. BGT has also signed a contract for building the remaining four vessels with Hyndai Heavy Industries (HHI).

The all Moss Rosenberg LNG carriers which will have a capacity of 141,000 cubic metres each, will bring the number of BGT owned ships to 13.

NLNG’s shareholders are sponsors of the loan facility for which six international banks, acting as Mandated Lead Arrangers (MLAs) signed underwriting letters of commitment for $276million last November, an equivalent of 60% of the facility. The MLAs have successfully syndicated the loan in the international financial market.

BGT has established a track record for raising funds for its ships in the local and international financial markets. Its first attempt was in 1990 when it successfully raised $132 million to buy four ships. It has since repaid the loan.

The company also raised funds totalling $260 million from the local and international finance market to build three new ships at HHI’s yard. The ships were meant for its third train expansion project. The ships which--LNG Rivers, LNG Sokoto and LNG Bayelsa-were part-financed with shareholders’ funds have all been delivered to the company.

Andrew Jamieson, Managing Director of NLNG and Vice President of BGT says the facility further underscores investors’ confidence in the operations of the two companies. He further said NLNG and BGT are happy with its contributions to the Nigerian economy, particularly the role in diversifying from oil to gas, and contributing to putting out the flares in the country.

Jamieson also assured that the companies’ expansion programmes were on time and within budget.

BGT is a subsidiary of Nigeria LNG Limited, a Nigerian Joint Venture Company whose shareholders are the Nigerian National Petroleum Corporation (49%), Shell Gas BV. (25.6%), TotalFinaElf LNG Nigeria Limited (15.0%) and Agip International (N.A) 10.4%

Press Statement
March 19, 2003 
Lagos, Nigeria.