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    Savannah pens gas supply deal in Nigeria


The company will supply gas to Amalgamated Oil Company Nigeria.

by: Shardul Sharma

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Natural Gas & LNG News, Europe, Security of Supply, Corporate, News By Country, Nigeria

Savannah pens gas supply deal in Nigeria

UK-based Savannah Energy’s subsidiary, Accugas, has entered into a natural gas sales and purchase agreement with Amalgamated Oil Company Nigeria, Savannah said on May 31. The agreement enables Accugas to sell gas produced in the OML 156 petroleum lease area to its customers.

Accugas focuses on marketing, processing, distributing, and selling gas to the domestic Nigerian market. In 2022, Accugas processed and transported an average of 145mn ft3/day of gas through its pipeline network, sourced from Savannah's Uquo gas field. Gas is processed at Accugas' Uquo central processing facility and transported through its pipeline network.

The agreement with Amalgamated Oil marks the first time that Accugas will be supplying gas to its customers that has not been produced from the Uquo gas field. Gas purchased from Amalgamated Oil does not require processing by Accugas and therefore does not utilise the available capacity at the Uquo central processing facility, the company said.

According to the agreement, Accugas will purchase up to 20mn ft3/day over the next ten years. Amalgamated Oil has borne the cost of connecting to Accugas' infrastructure, with the gas delivered through a new pipeline connecting its early production facility to Accugas' existing pipeline network. Accugas has not incurred any additional capital expenditure for this project.

The contract is already operational, and gas supply to Accugas has stabilised at approximately 20mn ft3/day.