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    Savannah launches gas sales to TransAfram in Nigeria


-Savannah's deal with TransAfram covers 35mn ft3/d of supply over initial three-month period.

-Gas sales were also launched to Central Horizon Gas on June 27.

-Savannah now has deals in place to sell gas for quarter of Nigerian thermal generation capacity.

by: NGW

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Complimentary, Natural Gas & LNG News, Africa, Corporate, Exploration & Production, News By Country, Nigeria

Savannah launches gas sales to TransAfram in Nigeria

London-listed Savannah announced on June 28 that its 80%-owned subsidiary Accugas has launched gas sales to TransAfram Power for use at its power plants in Nigeria's River state.

Savannah signed an interruptible gas deal with TransAfram on June 6 covering up to 35mn ft3/day of gas supply over an initial three-month period, with an option to extend sales for a mutually agreed further period. These supplies are delivered from the Accugas network via the Nigerian Gas Co pipeline from Ikot to Abasi.

This marks the third customer that Savannah has begun selling gas to in the last month, with agreements now in place to sell gas for nearly a quarter of Nigeria's thermal generation capacity, up from 14% at this time last year. Just on June 27, Accugas started gas sales to Nigerian distributor Central Horizon Gas Co. (CHGC), cover 5mn ft3/d of supply over one year. This is under an agreement that was reached in February this year.

Nigeria is looking to expand gas-fired power generation in order to improve energy supply and capitalise more on its domestic resources.