Petroleum Africa
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Wednesday, April 16, 2014
Since its establishment, Seven Energy has focused on capitalizing the demand for gas and power in Nigeria. Through its gas processing, distribution and marketing subsidiary, Accugas Ltd. and its recent acquisition of the East Horizon pipeline, the company has to date invested approximately $1 billion in south-eastern Nigeria. This reinforces its position as a leading integrated gas company in Nigeria. Seven aims to capture the growing demand for gas and power as Nigeria’s industrial base grows and the liberalization of the power sector spurs further investment in generating capacity.
The company has long-term take-or-pay gas sales agreements in place to sell over 1.4 Tcf of gas on the domestic market; with a 10-year contract to supply 43.5 Mmcf/d to Ibom Power; a 20-year contract to supply 131 Mmcf/d to the federally-owned power plant at Calabar; and a 20-year contract to supply 25 Mmcf/d to a cement plant in the Calabar area, increasing to 50 Mmcf/d upon the anticipated expansion of the plant. The two power stations, which will have a combined installed capacity of approximately 750 MW when fully commissioned, will add an additional 20% of capacity to Nigeria’s current operating electricity generation capacity.
In collaboration with its customers and other stakeholders, Seven is working to link its infrastructure together to establish a 300-km gas ring of 24-inch and 18-inch high pressure pipelines in Akwa Ibom and Cross Rivers states with total distribution capacity of 600 Mmcf/d, capable of supplying the demand centers of Calabar, Uyo, and Ikot Abasi, and giving access to Port Harcourt to the west. In addition, at Ekid, near the ExxonMobil Qua Iboe terminal, the company owns a gas plant for treating and processing 200 Mmcf/d of gas which is currently supplied from the Uquo Field where the company is the 100% funding partner.
With this significant capacity built into its processing and distribution infrastructure, Seven is well-positioned to provide long-term gas supply for power generation as well as lower-cost fuel to local industries. Seven is currently in active discussions with a number of current, planned, and potential off-takers with regards to future gas supply agreements.
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