Nigeria, World Bank, Seven Energy sign deal to add 500mw to national grid

In fulfillment of its commitment to increasing power supply in the country and further tapping into the ‘gas to power’ value chain, the Federal Government, Thursday signed a number of agreements that will add more than 500 MW electric power to the National Grid.

Specifically a number of agreements were signed by the FG, World Bank, Niger Delta Power Holding Company, NDPHC, Nigerian Bulk Electricity Trading, NBET, and the gas supplier, Seven Energy, an integrated gas company in Nigeria, which is investing about $500m in the construction of gas processing facility at the Uquo Field in Akwa Ibom State.

Among them is an agreement for a Partial Risk Guarantee (PRG) between NDPHC and the World Bank was signed to secure the supply of about 130 million cubic feet per day of gas to NIPP Calabar Plant by Seven Energy.

Also a Gas Supply Agreement was signed between 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.

The Vice President, Prof. Yemi Osinbajo, SAN, at the signing ceremony described the agreements as significant.

He added that the development would open up new opportunities for investments in Nigeria’s gas and power sectors.

Prof. Osinbajo noted that the arrangement was the first of its kind for gas supply in Nigeria and a demonstration of the Federal Government’s commitment to increasing power supply in the country.

According to the Vice President, “it will encourage investment in the gas infrastructure and we are certainly looking forward to the multiplier effects that will come from this.

“This is a very significant event for us and as we all know this is the first PRG for gas that we are signing

“Given the current power situation, we expect that this gas that will go into the Calabar plant will provide about 500MW of power which is very significant given our current situation.