Genser Energy secures USD425m for mainstream projects; Trafigura as investor, offtaker

Genser Energy was advised in this transaction by Northcott Capital Limited as financial advisers and Clifford Chance LLP as legal advisers

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A Ghanaian Company, Genser Energy, has secured an 8-year USD425m funding package for gas midstream projects to Kumasi, Prestea, and Takoradi by way of advancing decarbonization.

The fund comprises a syndicated senior loan facility of USD325m and a USD100m mezzanine loan facility and is to be used to settle existing debt and finance existing projects in Kumasi, Prestrea, and Takoradi.

The senior loan facility was financed by a consortium of regional and commercial international banks, development financial institutions, and funds.

Expansion Projects

The Kumasi project is a 100km natural gas pipeline while the one at Prestea is a 200mmscfd gas conditioning plant.

Also, the company is to construct a Natural Gas Liquid (NGL) storage terminal at the port at Takoradi, which will be a major step towards Genser’s 2035 target for achieving the decarbonization strategy.

Why Natural Gas pipelines

According to Genser, the construction of these natural gas pipelines (Kumasi and Prestea) will not only be for its benefit, but will significantly impact Ghana and the entire West Africa, economically and its environment.

Additionally, as an energy solutions company, the transaction will mark a significant milestone in Genser’s decarbonization strategy by aiding its diversification from power to the gas midstream sector while contributing to Ghana’s climate change targets on emission reduction.

Furthermore, industries will be encouraged to switch from imported trucked diesel and heavy fuel oil(HFO) to natural gas, a low-carbon intensive fuel per the availability of cheaper and readily piped natural gas in Kumasi.

Also significantly, the gas pipeline will aid the relocation of power plants from Ghana’s coastal Regions and reduce line losses while improving efficiency on the national grid.

Moreover, Ghana as a nation will be placed as a significant producer and exporter of Natural Gas Liquids (NGLs) with the establishment of the gas conditioning plant.

About Genser

Genser is an energy solutions provider that builds, owns, and operates distributed generation installations and natural gas distribution infrastructure, selling power and natural gas to mines, industries, and utilities.

In the last 15 years, the company has commissioned seven power plants with an installed capacity of over 160MW.

Also, Genser has developed its own fuel midstream facilities for its thermal plants which makes it the largest and only private owner of natural gas pipelines in Ghana.