A Review of the Nigerian Energy Industry

Seven Energy begins supply of natural gas to Notore

Section of the Notore fertiliser plant
Section of the Notore fertiliser plant

21 March 2015, Sweetcrude, Lagos – Seven Energy International Limited (“Seven Energy”), the indigenous Nigerian oil and gas development, production and gas distribution Company has commenced the supply of natural gas to Notore Chemical Industries Plc. (“Notore”), a leading fertiliser and agro-allied company in Africa.

The commercial delivery of gas to Notore in Onne, Rivers State is being executed through Accugas, a wholly-owned subsidiary of Seven Energy.

Gas is being supplied at a rate of 25 million cubic feet per day (“MMcfpd”) as part of the feedstock to Notore’s fertiliser plant. By this supply arrangement, Seven Energy is enabling the Notore fertiliser plant to improve its operational efficiency enhancing the plant’s output. Natural gas is the core input into the production of fertiliser.

Phillip Ihenacho, Chief Executive Officer, Seven Energy commented: “We are happy to announce the formal commencement of gas deliveries to Notore Chemical Industries Plc through our subsidiary, Accugas, a clear demonstration of our commitment to drive the industrialisation of Nigeria through the development of the Country’s huge natural gas resources. Through the supply of our processed gas we are providing a new source of feedstock to meet the company’s increasing requirements, whilst directly enabling the production of fertiliser that Nigeria’s burgeoning agriculture sector desperately needs to grow.”

Stephen Tierney, Managing Director, Accugas said: “This milestone represents another significant step for Accugas in our effort to increase domestic supply and utilisation of gas for the good of the Nigerian people and its economy. By providing a clean, dependable, quality source of gas supply to the Notore plant, and doing so via an integrated end to end solution, we are demonstrating our clear commitment and execution performance toward enhancing domestic gas consumption for broader industrialisation.”

Seven Energy has continued to champion the Nigerian gas and industrial revolution through the exploration and production of natural gas, and, critically, its commercialisation through processing and distribution infrastructure, where it has invested over $1 billion in the south east region of the Niger Delta in the last 5 years. This enables Seven Energy to reach the end user and so support Nigeria’s evolving power sector and meet the growing energy needs of the industrial sector. In 2014 President Goodluck Jonathan commissioned the Uquo Gas Processing facility owned by Seven Energy. The facility currently supplies gas to five industrial customers.

Seven Energy International Limited is an independent Nigerian integrated oil and gas development, production and gas distribution company founded in 2004. With the backing of strategic long-term investors and main offices in Lagos and London, the Group has a unique focus on the emerging Nigerian domestic gas market. The Group’s upstream assets include licence interests in the Uquo Field and the Stubb Creek Field (south east Niger Delta), an indirect interest in OMLs 4, 38 and 41 through a Strategic Alliance Agreement with Nigerian Petroleum Development Company (north west Niger Delta) and a licence interest in OPL 905 (Anambra Basin). Its midstream infrastructure assets, focused on south east Niger Delta, include the 200 MMcfpd Uquo Gas Processing Facility and a gas pipeline network of 260 km with distribution capacity of 600 MMcfpd.

Accugas Limited is a wholly owned subsidiary of Seven Energy, the indigenous Nigerian oil and gas exploration, development and production company. Accugas is a gas processing, marketing and distribution company focussed on commercialisation, for the domestic Nigerian markets, of the substantial discovered but undeveloped gas resources onshore in the Niger Delta. Accugas currently has long term gas sales contracts in place to supply over 1 Tcf of gas for power generation in the south-east Niger Delta.

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