Seven Energy Ltd., a Nigerian explorer and electricity producer, plans to spend more than $500 million this year on new natural-gas pipelines to supply power stations and industries in southeastern coastal states.
The links will tie into the East Horizon pipeline system, Chief Executive Officer Phillip Iheanacho said in an interview with Bloomberg TV Africa to be aired March 29. About $200 million of the total will go toward supplying the 634-megawatt Calabar power plant in Cross River state.
Seven Energy is looking at debt financing and arranging additional equity of about $150 million to $250 million, according to the CEO.
In December, the company completed the acquisition of East Horizon Gas Co., a unit of Oando Plc (OANDO), for $250 million. East Horizon operates a 128-kilometer (80-mile) pipeline in Akwa Ibom and neighboring Cross River with a capacity of 120 million standard cubic feet a day.
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