One of Nigeria’s foremost gas processing firms, Seven Energy, has initiated negotiations with 10 power plants over the possibility of supplying gas, in a move which would significantly boost current generation output.

A gas sale agreement has already been established with Akwa Ibom Power Plant, while Seven Energy is in the process of developing infrastructure to extend supply to neighbouring cities including Calabar, Port Harcourt, and Aba.

To this effect, sub-Saharan Africa’s largest gas processing plant has been installed by the company, and a 200-kilometers gas pipeline has also been constructed. The processing plant has the ability to “process 220 million standard cubic feet of gas per day,” Nigerian daily Business Day reported.

According to Seven Energy’s MD, Philip Ihenacho, the firm wants to eliminate redundancy in gas supply, enhancing the efficiency of power plants in the country in the process. Most power plants in Nigeria are gas-driven, given its abundant reserves.

Seven Energy is said to have invested an estimated $800 million in developing gas infrastructures across the country. It reported reached an agreement with indigenous oil and gas operator, Oando, to acquire Easter Horizone Pipeline, an asset Oando jointly shares with Nigerian Gas Company (NGC).

Gas shortage, amongst other challenges such as dilapidated infrastructure and low maintenance are said to have impeded Nigeria’s quest to improve power supply.

Following heightened shortage in gas supply recently, power generation has dropped to about 3000MW, though Nigeria has an installed capacity of 6,600MW.