Union Bank of Nigeria Plc. have signed a N4 billion agreement to finance Egboama Gas Plant owned by PNG Gas Limited.
A statement from the bank explained that the facility will provide the required funding for the refurbishment and upgrade of the gas plant located in Delta State.
Commenting on the agreement, the Executive Director, Corporate Banking of Union Bank, Mr. Emeka Okonkwo said Union Bank was pleased to support the PNG with the financing of Egboama plant, which is expected to produce about 101 tons of liquefied petroleum gas per day.
The project, according to him, would help to increase domestic utilization of gas in the country and reduce dependence on 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, 750 barrels of natural gas liquids and 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 of Nigeria 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.