World Bank approves first Nigeria gas offtake guarantee

Issue 254 - 17 May 2013 | 5 minute read

In the latest step of the long process of moving Nigeria’s energy sector away from erratic gas supply and unenforceable contracts, the World Bank on 22 April approved the first of four partial risk guarantees (PRGs) worth $400m covering gas sales in the country. The PRG was signed alongside a gas supply and aggregation agreement (GSAA) by the World Bank, the Power Holding Company of Nigeria (PHCN, as owner of Egbin power plant), Egbin Power plc, Chevron Nigeria Ltd and Deutsche Bank. Provisions have been made under the agreement for the transfer of guarantees to a new owner of Egbin should the plant be sold, subject to approval by the World Bank.

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