FG, World Bank, Seven Energy sign pact on 500 megawatts

FG, World Bank, Seven Energy sign pact on 500 megawatts
November 03 22:10 2016

The federal government on Thursday signed agreements with World Band bank, Seven Energy and others to add more than 500 megawatts of electricity to national grid.

The agreement was entered into by the Niger Delta Power Holding Company, Nigerian Bulk Electricity Trading and Seven Energy in fulfilment government’s commitment to increasing power supply in the country and further tapping into the gas to power value chain.

Seven Energy, the key partner in the programme is an integrated gas company in Nigeria investing about $500 million in the construction of gas processing facility at the Uquo Field in Akwa Ibom state.

An agreement for a Partial Risk Guarantee (PRG) between Niger Delta Power Holding Company 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 Niger Delta Power Holding Company 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 agreement was signed by the Minister of Finance, Mrs. Kemi Adeosun on behalf of the federal government while its Country Director, Rachid Benmessaoud, signed for the World Bank.

Speaking at the signing of the agreement, Vice President Yemi Osinbajo, said the agreements were as significant and would enable generation of more than 500 megawatts of electricity to the national grid.

He said 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.

“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.

”The gas pipeline itself is a feat of some sort, I am told that it traverses five rivers, so that by itself is worth celebrating. Even if all we get from social media this evening is an engineering feat, we will be quite pleased with that,” he said.

Also speaking, Managing Director of the Niger Delta Power Holding Company, Mr Chiedu Ugbo said the initiative was significant in the development of Nigeria’s gas to power programme.

In his remarks, the Chief Executive Officer of Seven Energy, Mr Philip Iheanacho said the agreements were important because “it is the first gas to power guarantee that the World Bank has provided for, encouraging investment in the gas sector in Nigeria.’’