Cameroon Gas Producer Inks CNG Deal
Cameroon gas producer and distributor Victoria Oil & Gas (VOG) has entered into an exclusive agreement to partner with a Turkish partner to develop compressed natural gas (CNG) in Cameroon.
VOG announced last month that it was planning to launch a CNG business there. Now on June 26 it has named its partner, Istanbul-based Naturelgaz Sanayi ve Ticaret (Naturelgaz), describing it as Europe's largest CNG supplier and distributor, and noting that it is 93.7%-owned by Turkey-listed Global Investment Holdings (GIH) which focuses on clean-tech and infrastructure.
AIM-listed VOG said the purpose of the “long-term partnership” with Naturelgaz will be to: design, build and operate CNG infrastructure and solutions for customers who need mobile energy, initially in Cameroon but with the intention of rolling this out into other African countries; to market bulk-CNG including to industry, businesses and power generators that require reliable off-grid gas supplies; and to tap Naturelgaz’s expertise in developing an ‘auto CNG’ market with vehicle manufacturers.
The first step agreed between both firms is a 2mn ft3/d (21mn m3/yr) CNG plant and customer distribution project, currently in design stage.
VOG executive chairman Kevin Foo said the accord “brings together GDC's upstream gas capabilities and experience of the [Cameroon port city] Douala energy market with Naturelgaz's proven track record of delivering CNG solutions. We are excited to be adding CNG to our product mix." Naturelgaz CEO Hasan Tahsin Turan, said his firm “will provide CNG energy solutions to where they are needed most - countries like Cameroon with limited energy infrastructure and a huge gap between energy demand and supply.”
VOG has been frustrated by the decision of Cameroon’s main power generator Eneo not to renew a gas offtake contract, but sees strong demand for gas beyond large centralised power generation there. Sources suggest that the CNG approach could eventually be scaled up, in modules, to 50mn ft3/d in Cameroon alone - and possibly more if extended to neighbouring countries, with gas sourced from other suppliers.