• Natural Gas News

    Savannah strikes Nigerian gas deal

Summary

Deliveries are due to start in the next 12 months.

by: Joseph Murphy

Posted in:

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

Savannah strikes Nigerian gas deal

Africa-focused Savannah Energy announced on February 22 it had entered into a deal to sell gas to Central Horizon Gas (CHGC), a gas distributor in Nigeria's South-South region.

CHGC operates a 17-km gas pipeline, with a capacity of 50mn ft3/day, that delivers gas to more than 185 industrial and commercial customers across cities in south Nigeria including Lagos and Port Harcourt. The company is majority-owned by Axxela.

The sales agreement covers the supply of up to 5mn ft3/d over one year, or longer if it is extended. The gas will be delivered via Savannah's Ikot Abasi facility and then by third-party infrastructure to CHGC in the Port Harcourt area. Deliveries are due to commence in the next 12 months, with the timing dependent on CHGC finishing work to connect to third-party infrastructure.