Genser Energy raises $435m to expand Ghana’s midstream gas infrastructure

American energy solutions provider Genser Energy has announced the closing of a $425m funding package to support the expansion of its midstream gas business in Ghana. The company is already a provider of captive power solutions to several of Ghana’s gold mines and is currently expanding across West Africa.

The 8-year, $425m funding package includes a $325m syndicated senior loan facility and a $100m mezzanine loan facility. It will be used to refinance Genser Energy’s existing debt and support three critical midstream gas projects in Ghana.

Expansion of Ghana’s gas pipeline network

The first one is a 100km natural gas pipeline to Kumasi, Ghana’s second largest city. In doing so, Genser Energy seeks to make piped natural gas available within Ghana’s central belt and offer an alternative to imported trucked diesel and heavy fuel oil (HFO) for industries in the region.

According to Genser Energy’s records, the company is planning to build an overall gas pipeline network of 320km in Ghana to connect its power generation plants to Ghana Gas’ Prestea Regulating and Metering Station (PRMS). In November 2019, a first phase of 80km was already commissioned to provide gas to Gold Fields’ Tarkwa and Damang gold mines power stations.

Additional phases notably target gas supplies to Kinross Gold Corporation’s Chirano mine, Perseus Mining’s Edikan mine, and Gold Star Resources’ Wassa mines, among others.

Launch of an integrated natural gas liquids (NGLs) business

The second one is a 200 MMscf/d gas conditioning plant in Prestea, southwestern Ghana, where Genser Energy intends to produce natural gas liquids (NGLs) such as propane, butane, ethane, and liquefied natural gas (LNG). All NGLs will be sold under an off-take agreement to Trafigura, who notably participated in the mezzanine loan.

Trafigura is also providing additional funding to the third and last project, a NGL storage terminal at the Takoradi Port.  

A wide range of financiers

The ability of Genser Energy to secure such a debt package is an encouraging sign for Africa where several asset owners and operators are currently raising capital for domestic midstream and downstream gas ventures.

A wide and diverse range of investors participated in Genser Energy’s senior loan facility, including regional and commercial international banks, development financial institutions, and funds. These comprised the Standard Bank of South Africa, Absa Bank, Société Générale, the Mauritius Commercial Bank, Ninety One, Barak Fund SPC Ltd, and the Development Bank of Southern Africa. On the other hand, the mezzanine loan facility is provided by Trafigura, Barak Fund SPC Limited and the US Based Fund, Trilinc Global Sustainable Income Fund Master Ltd.

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