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PIPELINES & TRANSPORT
Niger’s president touts

benefits of planned oil
pipeline to Benin

Niger’s President Mohamed Bazoum has said
that a planned pipeline carrying crude from
Niger’s Agadem oilfield to the southern Benin
port of Sèmè will provide numerous benefits to
both countries.
The construction of the pipeline is expected
to cost $5bn. It will be managed by the China
National Petroleum Corp. (CNPC) and the
state-run Niger West African Oil Pipeline Co.
(WAPCo).
According to government data, the pipeline
will result in a substantial increase in Niger’s
crude oil production, from 20,000 barrels per nitrogen fertiliser producer in MENA; and Oras- Arranger Mandate Update: The Company
day (bpd) to 110,000 bpd. com Construction, one of the largest global con- announced on June 23, 2022, that it had entered
This crude oil production will account for tractors operating in the MENA region and the into an Arrangement and Mandate letter with
45% of Niger’s GDP, a jump from the current Sovereign Fund of Egypt. Attijariwafa Bank, a Moroccan multinational
25%, which is estimated to be worth XAF400bn bna/IntelliNews, 16 March 2023 bank and one of the leading banks in Morocco,
($655mn). under which the Company mandated the
During the first 20 years of the pipeline’s China International Energy Arranger in relation to the arrangement of
operation, the project is predicted to generate project debt financing for the Phase 2 develop-
about $490mn in tax revenue for Benin. The to invest $5.1bn in green ment of Sound Energy’s Tendrara Production
project is also anticipated to produce 3,000 jobs Concession.
throughout both countries, offering employ- hydrogen project in Egypt Pursuant to the Agreement, the Arranger
ment opportunities to local communities. was mandated and provided with exclusivity by
bna/IntelliNews, 15 March 2023 China International Energy Group (CIEG) plans the Company for a period of eight months, to
to break ground in May on a green hydrogen arrange a long-term project senior debt facility
project in Egypt. The company plans to invest with a term of no more than 12 years of up to
INVESTMENT $5.1bn in the project, which is expected to be MAD2.250bn (approximately $215mn using
implemented in two phases consisting of a solar current exchange rates) for the partial financ-
EBRD providing $80mn loan park and a wind farm, along with a facility for ing of the currently estimated approximately
$330mn total Phase 2 development cost (includ-
electrolysing water and synthesising ammonia.
to Egypt Green Hydrogen for able to produce 140,000 tonnes per year (tpy) of drara Production Concession.
When both phases are complete, it will be ing development wells post-first gas) of the Ten-
100-MW electrolyser facility green hydrogen. The plant targets the export of that the parties had agreed to amend the Man-
In December 2022, the Company announced
ammonia to European markets.
The European Bank for Reconstruction and Since 2009, CIEG, a state-owned enterprise date to seek to negotiate binding terms for the
Development (EBRD) is providing up to $80mn based in Beijing, has carried out around 10 Financing by March 15, 2023, whilst also agree-
for an equity bridge loan to Egypt Green Hydro- energy projects in Egypt, including a 700-MW ing to an extended period of exclusivity provided
gen, the developer and operator of Egypt’s first solar project in Kom Ombo. It is currently work- to the Arranger under the Mandate to June 1,
green hydrogen production facility. The loan will ing on a 330-km electrical interconnection with 2023, in order to arrange the Financing.
support funding the procurement and construc- Saudi Arabia. Significant progress is being made with the
tion of a 100-MW electrolyser facility together bna/IntelliNews, 15 March 2023 Arranger, who has recently completed legal
with the related facilities and civil works needed and technical due diligence in respect of the
for the completion of the project Sound Energy provides proposed Financing. Whilst additional pre-Fi-
The electrolyser facility, which will be pow- nancing aspects such as Phase 2 Engineering
ered by renewable energy, will produce green update on financing for contracts remain subject to award, finalisation
hydrogen that will substitute some of the grey and review, the parties have now moved on to
hydrogen produced from gas consumption used Tendrara project more detailed financial structuring of the pro-
by the Egyptian Fertiliser Co. (EFC). The green posed Financing, particularly in respect of taxa-
hydrogen will be used by EFC as input to pro- Sound Energy, the transition energy company, tion, and consequently the parties have entered
duce green ammonia, which will be exported to has provided a project financing update in rela- into a further amendment to the Mandate in
the international markets. tion to the Company’s Tendrara Production order to extend the date by which the parties will
Egypt Green Hydrogen is a joint venture Concession, onshore Morocco. seek to negotiate binding terms for the proposed
between Norway’s Scatec; Fertiglobe, the largest Phase 2 Development, Lead Finance Financing to 28 April 2023.

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