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.
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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.