Stanbic Bank and its parent bank, Standard Bank South Africa have acted as debt arranger and coordinating banks for a syndicated loan for Genser Energy Ghana Limited to support the construction of a natural gas pipeline and processing facilities. The transaction is in line with the Bank’s climate policy which supports efforts to mitigate the impact of climate change, and to improve access to reliable and sustainable energy sources: a critical factor in economic growth and poverty alleviation in Africa.
Speaking on the impact of the transaction, Head, Energy and Infrastructure, Stanbic Bank Ghana, Sydney Nii Ayitey Tetteh said the bank is committed to partnerships that aim at finding the right energy solutions on the continent.
He said “We are committed to partnering with businesses and other relevant stakeholders to find the right energy solutions to improve and drive Africa’s growth. This transaction enables Genser to take gas from the upstream that would otherwise be flared and direct it back into the Ghanaian economy. The processed gas and associated hydrocarbons will be used as fuel to provide power to homes to displace kerosene and other more carbon emitting fuels as energy sources and provide natural gas and liquids for the industrial sector. This is imperative for Ghana’s energy transition and climate change goals.”
He added that “Our commitment to gas financing is informed by the emissions and development plans of our key markets. We will continue to finance gas responsibly over the medium to long term as a transition fuel for use in domestic and regional markets as well as a means of facilitating natural gas for export. We commit to developing a transition finance product framework that will support the use of gas in its specific role as a transition fuel in Africa. We continue to work toward reducing our emissions intensity while managing our gas exposure.”
The funding will be used to refinance Genser’s existing debt and support the next phase of its expansion, enabling construction of a 105km natural gas pipeline to Ghana’s second largest city. Kumasi, a gas conditioning plant in Prestea, and a natural gas liquid (NGL) storage terminal at Takoradi Port.
The transaction will not only support Genser’s energy transition strategy but also contribute to Ghana’s national climate change targets. Furthermore, the availability of cheaper and readily accessible piped natural gas will assist Genser’s customers to transition from imported trucked diesel and heavy fuel oil (HFO) to local natural gas alternatives. This comparatively cheaper and cleaner energy source will also support Ghana’s bid to relocate power plants from coastal regions to reduce line losses and improve the national grid’s energy efficiency. It further has the potential to position the country as a significant producer and exporter of NGLs.