Early-Stage Investment Readiness for Gas Commercialization Projects

Building a New Frontier of African Infrastructure Sponsors through Entrepreneurship and Action-Led Learning

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Co-Hosted by

Brickstone

Download Presentation at Gas Investment Forunm

 

Overview

We aim to bridge the Gap of lack of Bankable Deal Pipeline in Africa through an Early-Stage Investment Readiness Programme focussed on Gas Commercilization Projects.

  1. A low-cost Open Learning Programme for building capacity of locally based project sponsors of on Gas Commercilization Projects in Africa.
  2. To provide substantial infrastructure expertise for on Gas Commercilization Projects Sponsors to understand project preparation, financial structuring and have a workable development plan for the project sponsor to be taken seriously within the Early Stage  investment community.
  3. To use the programme as a basis of selection for early-stage investors to single out projects that have traction, show bankability and a sponsor team that can raise pre-development capital i.e Project Preparation Financing

Rationale

Why Gas Commercialization Projects

Gas commercialization helps reduce the release of methane and other harmful greenhouse gases into the atmosphere. Methane is a potent greenhouse gas, and by capturing and utilizing flare gas, emissions are minimized, contributing to climate change mitigation efforts.

Instead of allowing this gas to be flared, it can be harnessed for various beneficial purposes, including power generation, industrial use, and even local community projects. Balancing economic development with environmental sustainability remains a key challenge. It is imperative for the sector to leverage adapting to change, adopting innovative approaches and fostering sustainability for resilient growth in the industry.

Gas Commercilization as one option for Low-carbon infrastructure that generates fewer carbon emissions than traditional infrastructure and helps build resilience in vulnerable countries while protecting against exposure to extreme climate change events.

The Early-Stage Investment Readiness for Large Scale Gas Commercilization Projects focuses on these three (3) Catalytic Anchor Sub-Sector flagship interventions

ESIR-GTL-2

Gas Processing/Gas to Power

Purify the captured gas for sale to third parties to Substitute higher-cost fuels, such as gasoline and diesel currently being used in captive power generation.

ESIR-GASLIQUID-1024x679

Gas to Energy Fuels

Converted to CNG or LNG depending on the relative prices of liquefaction and could be transported through virtual pipelines.

ESIR-GTL

Gas to Liquids

Convert captured gas into longer-chain hydrocarbons, such as GTL fuel (GTL naptha, GTL normal paraffin, GTL gasoil and GTL baseoil) or Petrochemicals or Fertilizers

Programme Objectives

The Programme aims to help with Early Stage Investment Readiness for Gas Commercilization Projects to typically meet the following Bankability objectives

Slide1-Banakbility A

How Gas Commercilization Projects can be characterized by a high degree of revenues predictability under a (partial or full) Contracted Revenue Arrangement with a creditworthy counterparty 

Slide1-Banakbility B

How Gas Commercilization Projects can be delivered under a fixed construction price and schedule with a Building (or EPC) Contractor with clear strategies for Optimal Operations during Post-Construction

Slide1-Banakbility C

How Gas Commercilization Projects can be governed independently with strong Governance Systems and operate in an environmentally sustainable manner from development stage to post-construction phase

Programme Outline

The goal of this programme is to equip infrapreneurs with an overview of Project Finance by taking them through all the stages of a Project Development Lifecycle to be able to develop and apply the skills-set to achieve investment-ready projects in Large Scale Gas Commercilization projects.

The course provides important experience and practical examples in the following areas:

Developing Gas Commercilization Projects

Week 1 to 3

  • Introduction to Gas Commercilization Projects
  • Overview of Project Finance
  • Principles of Risk Allocation
  • Contract Mechanics in Project Finance
  • Project Development of Gas Commercilization Projects
  • Introduction to Pre-Financing Stage
  • Brickstone Project Bankability Framework
  • Achieving Bankability:
    • Predictable Cashflow
    • Construction & Operations
    • Governance & Sustainability
  • De-risking for Bankability (ESIIR Level 1 Workshop)
    • Gas Processing/Gas to Power
    • Gas to Energy Fuels
    • Gas to Liquids
  • Introduction to Bankability Planning Report
  • Infraprenuerial Guide to Financial Models
  • Developing Basic Financing Assumptions
  • Bankability Banking Report for your Gas Project (ESIIR Level 1 Workshop)
Financing Gas Commercilization Projects

Week 4 to 6

  • Introduction to Financing Stage
  • Key Concepts in Project Finance Deal Structuring
  • Infraprenuerial Guide to Financial Models
  • Developing Basic Financing Assumptions for Gas Projects (ESIIR Level 1 Workshop)
  • Managing Due-Diligence
  • Due Dilligence Plan for your Gas Project (ESIIR Level 1 Workshop)
  • Key Concepts in Finance Documents
  • Introduction to Security Arrangements
  • Introduction to Direct Agreements
  • Key Enhancement to FC
  •  
  • Ensuring Financing Close
  • Post-Financial Close Activities
Pitching Gas Commercilization Projects

Week 6 to 8

We’ll dig deeply to determine the required technical, commercial, legal and environmental parameters to be included in the Infrastructure Project Deck and provide strategic advice to aimed at attracting Early Stage Financing

Upon completion students must Complete the following deliverables in ESIIR Level 1 Workshops

    • Project Definition Report

    • Project Bankability Plan

    • Project Finance Roadmap.

    • Project Due-Dilligence Plan

    • Preliminary Financing Model

    • Early Stage Investment Pitch Deck

The Early Stage Investment Pitch Deck will be presented during the InfraPITCH at the Enabling Early Stage Investing in Infrastructure (EESII) that happens Three (3) time in a year. 

See Previous edition of EESII

Get Involved

TAC

Participate as a Partner

As a partner in the Early Stage Infrastructure Investment Readiness (ESIR), you can contribute as a sponsor. Support the development of future African Project Sponsors by sponsoring participants, or offering employment opportunities to sector or institution graduates. You can also nominate young professionals from your organization to participate in the program for free.

TAC

Be a Speaker

The ESIR is a platform for you to share your leadership insights on infrastructure development in Africa.

If you would like to be a speaker, please send us your biography and expertise. This information will help us determine the session topics that best align with your experience and knowledge, allowing us to collaboratively define the most impactful sessions for you to contribute to.

TAC

Become a Sponsor

By becoming a sponsor, you play a crucial role in its success. your contributions can support scholarships, program materials, networking events, and mentorship opportunities.

Your sponsorship of ESIR helps nurture the next generation of infrastructure leaders in Africa, empowering them to make a significant impact in their communities and beyond.

Fill the Application Form BELOW

    Company Information




    ESIR Pathway

    Which Gas Sector is Project In?

    Which Country is your Project Located

    Project Status

    No yet to secure ApprovalsNo but have all Approvals in placeYes but very little progressYes and in full operation

    Does your Project Business Plan/Information provide have

    A clear articulation of the projects long-term strategy to contribute to mitigation and adaptation in line with national objectives, Predictable Cashflow Arrangement and a robust financial model of the project’s future earnings and cash flows, incorporating key assumptions of its future growth strategy

    Describe your Project in 500 words

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