Afreximbank’s FEDA invests in Ecowgas to increase LNG distribution across Africa

The Fund for Export Development Africa (FEDA), a subsidiary of African Export-Import Bank (Afreximbank), says it has invested in Ecow-Gas B.V.(Ecowgas) to promote LNG distribution in West Africa.

Ecowgas is a Liquefied Natural Gas (LNG) distribution infrastructure platform region planning to build and operate new LNG facilities across West Africa to improve market penetration for the fuel in the region.

Afreximbank said this in a statement on Thursday.

The statement added that the investment would address the challenges and put Africa firmly on the path to energy sustainability.

“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. This will also promote efforts to minimise CO2 emission by replacing environment-polluting fuels currently in use,” the statement reads.

Benedict Oramah, president and chairman of the board of directors, Afreximbank, said the investment would bring about affordable energy.

“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,” Oramah said.

“Through this investment, FEDA is seeking to unlock access to affordable and cleaner energy for industrialisation purposes and to significantly impact intra-regional trade, especially in the West Africa region.”

Kwaku Boakye-Adjei, chief executive officer, Ecow-Gas, said work would commence immediately, and this would go a long way to removing barriers in distributing natural gas.

“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,” Boakye-Adjei said.

According to Emmanuel Assiak, acting chief executive officer, FEDA, the investment is to resolve the severe energy shortages, limited power supply, high production costs inefficient operations and reduce global competitiveness.

He added that off-grid solutions are required to address these challenges and put Africa firmly on the path to energy sustainability.

“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,” Assiak said.

“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.”