Nigeria is endowed with abundant energy resources, including the world’s eighth largest reserves of natural gas. Yet 65 percent of its population – some 100 million people – has no access to electricity. Unlocking the flow of Nigeria’s extensive natural gas reserves will expand power supply and energy exports to neighboring countries in the West Africa Power Pool. Under the joint Energy Business Plan, the World Bank Group has committed to leverage its diverse competencies along the energy value chain to support the provision of affordable, reliable, and sustainable energy services in Nigeria.
IFC & Seven Energy
IFC invested $75 million and the IFC African, Latin American and Caribbean Fund invested $30 million in Seven Energy. This was IFC’s largest equity financing in the oil and gas sector in Africa to date.
Increased Domestic Gas Production Seven Energy is one of the few companies developing and commercializing stranded and flared gas in the country. Greater availability of gas is one of the key ingredients for increasing power generation in Nigeria, a country that suffers significantly from lack of electricity and where only about 50% of the population has access to electricity from the grid. The quality of service is generally poor and lack of electricity has put a constraint on the country's economic growth. Gas production and transportation is critical to the energy mix, and Nigeria harbors significant gas reserves. Seven Energy's midstream capacity will be sufficient to supply gas for up to 2,15 GW of power capacity, which represents more than a third of the country's current capacity. In addition to supplying gas to the Ibom Power Plant (IPP), the Company will directly supply the Calabar National Integrated Power Project (NIPP), a plant with a capacity of about 560 MW. Moreover, IFC funding would also contribute to a planned 2014 project between Seven and an IOC to eliminate approximately 23mmcfd of IOC flared gas. The project will divert the gas to Sevens Uquo gas facility where it will be stripped of liquids and the residual gas blended with Sevens gas, adding to Seven's gas and liquids steams, in addition to eliminating the flared gas.