Infrastructure deficit: Seven Energy sues for increased investment
WORRIED by the spate of gas shortages in the domestic market, an indigenous integrated gas firm, Seven Energy has advocated for a reviewed gas policy that would encourage fresh investments in pipeline infrastructure.
Abdullahi Bukar of Seven Energy, in a chat with the media in Lagos, recently said the infrastructure deficit in Nigeria is massive and company therefore work to synegise and cooperate with gas infrastructure owners to aid the domestic market.
Besides, he urged the Federal Government to create a good pricing template that would encourage investment in an open market scenario.
“Gas pricing ideal in the willing buyer will seller market. Whenever you start dictating prices, you have started creating distortion. For example, a gas infrastructure agreement last long for as much as 20 years, so there should be assurance that the parties would be able to cope and provide what they needed to satisfy the market.
“The economics of the system is to create a willing buyer willing seller. At $2.50 pricing, govt should give us fiscal regime that will make it workable and bring to bear the situation that everybody is clamouring f or,” he said.
Unveiling its development plant in the next few years, Bukar said the company is planning to secure more gas sales agreement and complete construction of Oron to Creek Town gas pipeline in the nearest future.
Besides, he said plans are in the pipeline to develop expertise and strategic partnership for alternative gas market, such as the Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG) and the micro-Liquefied Natural Gas (micro-LNG) projects.
Meanwhile, the company recently said it has commenced gas supply to the Alaoji Independent Power Project in Alaoji, Abia State.
The company, through its wholly owned subsidiary, AccugasGas has significantly aided power generation with another the 504 Mega Watts (MW) through the power station.
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.
The Chief Executive Officer, Seven Energy, Phillip Ihenacho, 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.