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Savannah Energy makes first gas sales to TransAfam's Nigerian power plants

Tue 28 June 2022 10:05 | A A A

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(Sharecast News) - Independent energy company Savannah Energy's Accugas subsidiary has made its first gas sales to TransAfam Power in relation to the provision of gas for use at its power plants in Nigeria.

Savannah said on Tuesday that Accugas, an 80% indirectly owned subsidiary, had commenced sales to the Rivers State power plants following an interruptible gas sales agreement inked with TransAfam to supply up to 35.0m standard cubic feet of gas per day daily for an initial three-month period, with the option to extend for a mutually agreed period.

The AIM-listed group noted that the plant was connected to the Accugas network via the Nigerian Gas Company pipeline from Ikot Abasi.

Chief executive Andrew Knott said: "I am delighted to report we have already begun first gas sales to TAPL, having signed an agreement at the beginning of this month. This will be the third customer we have commenced new gas supply to in the past month.

"We have now signed and operationalised GSAs with power plants comprising around 24% of the country's thermal generation capacity (up from 14% at the same time last year) demonstrating our dedication to the Nigerian industry and being the energy partner of choice."

As of 1005 BST, Savannah Energy shares were up 2.03% 35.20p.

Reporting by Iain Gilbert at Sharecast.com

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