Nigeria’s Seven Energy Signs Gas Development Deal with World Bank

Nigeria’s Seven Energy has signed a $200 million gas development deal with World Bank.

The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance and credit enhancement arm of the World Bank Group, is providing a guarantee of $200 million against the risk of expropriation to Seven Energy’s wholly owned subsidiary, Accugas Ltd, the company said earlier this week.

“The investment has a strong environmental profile, as Seven Energy’s operations will reduce gas flaring and displace more-polluting fuels such as diesel and biomass,” the company said

This is MIGA’s first engagement in Nigeria’s gas sector.

Seven Energy’s processing facility and pipelines have commenced delivering gas to three power stations and two manufacturing plants-and the company expects to have a significant development impact in a country suffering from a severe energy shortage due to the lack of infrastructure to bring gas to the domestic market.

“MIGA’s involvement is an important part of the financial security package that enables us to invest for the long term in Nigeria’s gas sector—a decision that we expect will be good not only for our business, but also for Nigerian citizens, companies, and the economy as a whole,” said Phillip Ihenacho, Chief Executive Officer of Seven Energy.