A Review of the Nigerian Energy Industry

Seven Energy begins delivery of gas to Alaoji Power Station

Alaoji Combined Cycle Power plant.
Alaoji Combined Cycle Power plant.

*Gas supply adds 504Mw of to the national grid

May 22, 2015, Sweetcrude, Lagos – Seven Energy International Limited (“Seven Energy”), the indigenous Nigerian integrated gas company, through its wholly owned subsidiary, Accugas, has commenced supply of gas to the Alaoji Independent Power Project in Alaoji, Abia State. Gas delivery to the 504MW power station commenced in May 2015. Accugas is one of two gas suppliers to the plant with an initial contractual commitment to supply 30 million cubic feet per day (“MMcfpd”). The Alaoji project is the largest of Nigeria’s National Integrated Power Projects (NIPP), the first phase of which was commissioned in March 2015.

Speaking on the accomplishment, Phillip Ihenacho, Chief Executive Officer, Seven Energy, said: “The reliable supply of gas to the National Integrated Power Projects has been one of the core obstacles to their completion, and the consequent addition of significant generation capacity into the grid. Seven Energy is pleased to be able to provide this solution, ensuring that Alaoji has access to the gas it needs to commence electricity generation. Seven Energy is committed to providing the gas that will support the generation of electricity across Nigeria through our expanding gas distribution network. The addition of Alaoji to our gas supply network means we are now delivering affordable and reliable gas to three of Nigeria’s power stations. As a core of Seven Energy’s strategy to meet growing domestic energy demand, the Company has continued to invest in the expansion of its gas infrastructure in the south east Niger Delta region, from its processing hub in Uquo, Akwa Ibom state”.

Steve Tierney, Managing Director, Accugas, commented; “Alaoji’s decision to choose Accugas as one of its initial gas suppliers is a further endorsement of the quality and reliability of the service we deliver to our customers. By ensuring our network is strategically located to deliver gas to the NIPP’s coming on stream in the south east of the country, and having proven our ability to deliver almost 100% uptime of service, we expect to continue to expand our customer base in the coming months. Alaoji power station joins a growing list of gas off-takers, including Ibom Power Company, the United Cement Company of Nigeria, Notore Chemical Industries Limited and Calabar NIPP, who now rely on Seven Energy for the supply of gas to meet their power and industrial needs”.

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 licence interests in OPLs 905, 907 and 917 (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 227 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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