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- The multi-million dollars gas supply contracts to 504 Mega Watt (MW) capacity Alaoji power plant along the Imo River in Abia State has worsened the cold war between French major oil firm, Total and a consortium of indigenous firms, Frontier energy/ Seven energy.
- Frontier/Seven Energy partnership was given a one year emergency contract to supply the gas to Alaoji Power Plant after Total, which has a domestic supply obligation to supply gas to the plant had been unable to do so. It was revealed that despite the expiration of the one year emergency contract last July, the local firm made attempts to claw back the contracts.
- Managing Director of Frontier Oil, an indigenous gas development firm, Dada Thomas, confirmed that he wished Frontier was allowed to continue supplying gas to the same power plant, a declaration perceived as betrayal by Total.
- There is a cold war between the two companies over this contract, which may affect others,” he said. Confirming moves to extend the contract, Mr. Thomas, Africa oil+gas reportedly said that his company had made representation to the government that they be allowed to continue the supply.
- To ensure early gas supply to power plants, the Federal Government had requested the multinational oil companies, including Total E&P Nigeria, to complete various gas supply projects to resolve the situation. The section of the pipeline where the line connects to Nigeria Gas Company, NGC, facilities is vital for conveying gas to the Alaoji Power Plant.
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