The federal government of Nigeria signed a $112m partial risk guarantee (PRG) agreement with Seven Energy International Limited, the leading integrated gas company in south east Nigeria, to supply 130mcf/d of natural gas, delivered via Accugas, to the 560MW Nigerian Integrated Power Project (NIPP), Calabar, Cross River State, PM News reported. This arrangement guarantees payments to Accugas. It is backed by the government and the World Bank.
Additionally, a gas supply agreement was signed between Nigeria Delta Power House Company Ltd (NDPHC) and Seven Energy with legal obligations on the gas supplier to deliver gas to the power plant in Calabar. The agreement is expected to come info force within 90 days, informed Daily Post.
These agreements came under Nigeria’s commitment to increase power supply in the country and further tap into the gas-to-power value chain. Accordingly, a number of deals were signed by the government, World Bank, Niger Delta Power Holding Company, NDPHC, Nigerian Bulk Electricity Trading, Nigerian Bulk Electricity Trading (NBET), Seven Energy, which is investing about $500m in the construction of gas processing facility at the Uquo Field in Akwa Ibom State. Furthermore, Seven Energy constructed a 69km Uquo-to-Creek Town pipeline, which will provide a continuous flow of natural gas from the Uquo Field in Akwa Ibom state to NIPP Calabar. The venture included the completion of the longest horizontal directional drilling (HDD) river crossing project in Africa, all done using Nigerian contractors.