Ecow-Gas B.V. (Ecow-Gas), the Netherland-based energy infrastructure development company, and an affiliate of Tema Liquefied Natural Gas Terminal Company (TLTC) has been awarded funding for a Liquefied Natural Gas (LNG) distribution infrastructure platform in the West Africa region.
The amount of investment though undisclosed, the development impact-oriented subsidiary of Afreximbank, Fund for Export Development in Africa (FEDA) was responsible for this investment.
Africa’s industrial sector continues to suffer severe energy shortages due to limited power supply from the grid, with attendant high production costs, inefficient operations and reduced global competitiveness, amongst others. However, to make progress, off-grid solutions are required to address these challenges and put Africa firmly on the path to energy sustainability.
In a press statement, Afreximbank explained that FEDA’s investment in Ecow-Gas will support the creation, in partnership with a leading international oil company, of the infrastructure to provide access to cheaper and cleaner fuels for underserved industrial customers across the region using LNG.
The statement highlighted that the expected benefits from this investment will seek to promote efforts to minimize CO2 emission by replacing environment-polluting fuels currently in use.
Investment Aligns with Afreximbank’s Mission
Benedict Oramah, President and Chairman of the board of directors of Afreximbank, noted that:
“FEDA’s investment in Ecow-Gas is a testament to its mission of providing development equity capital to sectors critical to the growth and development of intra-African trade, export development and industrialisation.
“Through this investment, FEDA is seeking to unlock access to affordable and cleaner energy for industrialization purposes and to significantly impact intra-regional trade, especially in the West Africa region.”
BEnedict Oramah, Prez., Afreximbank
Emmanuel Assiak, acting chief executive officer, FEDA, commented:
“We are delighted to partner with experienced operators and investors on this mission-critical opportunity to unlock the provision of cheaper and cleaner fuel in West Africa.
“The combined complementary skills and capabilities within the Ecow-Gas platform stakeholders will help enable the Company to execute its growth plans.
“We believe that EcowGas will help to significantly remove the energy supply and cost bottlenecks that negatively impact the competitiveness of the region as a manufacturing destination.”
Emmanuel Asiak, Actg. CEO, FEDA
Ecow-Gas Awarded Contracts to Supply LNG
Kwaku Boakye-Adjei, CEO of H Investments and Ecow-Gas, commented:
“We are excited to commence this project as we see LNG as not only a fuel for large scale Independent Power Producers in the region but for mid to small scale industries as well to transition from Heavy Fuel Oil, Diesel and other distillates and ultimately, to renewables.
“LNG powered microgeneration can help to alleviate issues such as intermittency which act as a barrier to wide-scale adoption of renewables in West Africa.”
Kwaku Boakye-Adjei, CEO , H Investments and Ecow-Gas
Recall that, Ecow-Gas through its quest to introduce reliable supply of LNG into the West African Energy mix by sourcing fuel from Tema was awarded recent contracts by Burkina Faso, Sierra Leone and Liberia in its regional infrastructure network.
In the West African market, the required capacity of LNG is estimated at some 1 million metric tonnes per year for power generation and displacement of distillates in the region’s extractives industry.
Meanwhile, this is expected to grow to about 1.8 million metric tonnes per year over the next decade as countries in the region gradually move away from heavier fuels for cleaner ones.
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