Seven Energy International Limited  and Multilateral Investment Guarantee Agency (MIGA), the political risk insurance and credit enhancement arm of the World Bank Group  has announced its first engagement in Nigeria’s gas sector today. Seven Energy’s processing facility and pipelines have commenced delivering gas to three power stations and two manufacturing plants-and are expected 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 will provide a guarantee of $200 million against the risk of expropriation to Seven Energy’s wholly owned subsidiary, Accugas Ltd. 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.

MIGA’s backing of Seven Energy forms part of new generation of jointly developed World Bank Group solutions. In addition to MIGA’s insurance, the World Bank supports the country’s sector reforms while the IFC itself and an IFC-managed fund have jointly invested in Seven Energy in Nigeria.

“On energy, Nigeria is at a crossroads,” said the agency’s Executive Vice President and CEO, Keiko Honda. “MIGA is very pleased to be part of the country’s efforts to reduce its negative impact on climate change by moving toward cleaner energy and reducing gas flaring.”

MIGA was established in 1988 as an arm of the World Bank Group to promote foreign direct investment into emerging economies to support economic growth, reduce poverty, and improve people’s lives. MIGA fulfills this mandate by offering political risk insurance and credit enhancement to investors and lenders.

 

 

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