Linklaters advises on landmark transaction in the Nigerian gas to power sectorLinklaters has advised Accugas Limited (“Accugas”), a wholly owned subsidiary of Seven Energy International Limited a leading integrated gas company in Nigeria, on a long term gas sales agreement (the “GSA”), and an accompanying World Bank group credit support package, for the supply of gas to Calabar Generation Company (“Calabar”), one of Nigeria’s National Integrated Power Projects.
The GSA is supported by a USD 112m World Bank Partial Risk Guarantee (the “PRG”), the first of its kind for gas supply in Nigeria. The PRG, which is backed by the Federal Government of Nigeria, will secure the supply of 131 million cubic feet per day of natural gas to Calabar to support the generation of up to 561MW of electricity to the national grid – 15 per cent of Nigeria’s current power generation.
Andrew Jones, partner and head of Linklaters’ Africa Group, said:
“Partial Risk Guarantees and other innovative credit enhancement products are essential catalysts for unlocking the huge potential for energy and infrastructure projects in Nigeria and elsewhere in Sub-Saharan Africa. We are delighted to have helped Accugas implement this innovative arrangement.”
The Linklaters team was led by Finance and Projects partner Andrew Jones and managing associate Matthew Daffurn in London. They were assisted by associate Kwaku Osei.
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