Temasek backs Nigerian gas project
NIGERIA'S Seven Energy said yesterday it had secured US$255 million (S$319 million) from new backers, including Singapore state investor Temasek, to help fund its plan to build up a gas business in the West African country.
Seven Energy plans to buy gas-related infrastructure and pipelines to sell gas to Nigeria's domestic market. It has already invested US$1 billion in related projects in south-eastern Nigeria.
Temasek invested US$150 million alongside contributions from the International Finance Corporation and the IFC African, Latin American and Caribbean Fund in Seven's irredeemable convertible, coupon-less loan notes which the company says are akin to equity.
In all, the new investors would hold 26 per cent of the company's equity. "These investments are a vote of confidence in Nigeria and in Seven Energy's vision to be the leading supplier of gas in the country," Seven Energy chief executive Phillip Ihenacho said in a statement.
The company, which has its headquarters in Lagos and London, sees opportunities to provide cheap gas in the local market, as a past lack of investment meant that consumers tend to rely on much more expensive diesel and fuel oil.