Nigerian oil and gas firm Seven Energy has secured a US$495mn loan from a consortium of national and international lenders to help fund its spending to supply gas to the domestic market
Seven Energy plans to buy gas fields along with the related infrastructure and pipelines so it can sell gas into the domestic market for use in power generation and industrial consumption and the secured term loan is provided by First Bank, Ecobank, United Bank for Africa, Union Bank, FCMB, FBN Bank UK and Union Bank UK, the financial adviser said in a statement.
Demand for gas in Africa’s biggest economy is expected to rise to 84,950 cu/m per day by 2017 as gas-fired power plants ramp up generation, industry officials say. Gas demand has risen to 3.4mn cu/m per day.
Nigeria privatised its electricity sector one and half years ago in a bid to end decades of blackouts, which have hampered economic growth. Most of the plants sold were gas-fired and operating below capacity due to inadequate gas supply.
Accugas Limited, wholly-owned subsidiary of Seven Energy, processes and distributes gas in Nigeria. It has already invested US$1bn in related projects in the southeast region of the country.
Last year, the oil and gas company secured US$255mn from equity investors, including Singapore state investor Temasek Holdings, to help build up its gas business in the country.
