Seven Energy is a leading Nigerian integrated gas company

Strategy

 

section menu

Seven Energy operates solely within Nigeria, giving us a depth of local knowledge in the domestic power market. We are leaders in the development of gas to power infrastructure in Nigeria. Nigeria presents an attractive opportunity to Seven Energy. It is rich in gas reserves and resources, has a large and upwardly mobile population, a fast growing economy restrained by a lack of electricity and a Government committed to implementing game changing reforms in the gas-to-power sector. Seven Energy is perfectly positioned, as a leading integrated gas supplier, to provide an economic solution to the significant power supply deficit and to play a key role in powering Nigeria’s economic growth.  

Open all
Nigeria's gas resources

Nigeria has the largest proved gas reserves in Africa of 180 Tcf, yet its production is inadequate to satisfy the Government’s power generation targets. Its production lags behind that of its developing African peers, producing 3.7 billion standard cubic feet per day (“Bcfpd”) versus Egypt’s 4.7 Bcfpd and Algeria’s 8.0 Bcfpd; both countries with smaller gas reserves than Nigeria. 

Nigeria's economic outlook

Nigeria is Africa’s largest economy with a GDP of $569 billion in 2014. The country has seen robust historic GDP growth from 2000 to 2014 at an average of 8%, and this is forecast to continue to grow at a rate of approximately 5% per annum from 2016 to 2018.  

Nigeria's growing demographic

Nigeria’s population, the largest in Africa, and seventh largest in the world, is currently estimated at 182 million and forecast to grow by 2.5% per annum to 263 million by 2030. This makes it the fastest growing population in the top ten most populous countries in the world.  

Sector reforms driving gas demand

Nigerian Government policy is working towards stimulating domestic electricity generation to meet growing demand. This is being achieved by discouraging gas flaring through the implementation of a “flare out” policy and fines where flaring takes place. In conjunction with this, the publication of the Gas Master Plan in 2008 aimed to address the shortfall of gas supply through the promotion of investment in gas infrastructure and gas fired power stations. 

Gas market outlook

The domestic gas demand in Nigeria is forecast to rise to 10 Bcfpd by 2020 from a current estimated demand of 2 Bcfpd. The development of gas supply for the domestic market is therefore a priority for the Nigerian Government as it looks to achieve its power generation targets and to build a diversified and stable economy.