Peter Uzoho
Accugas Limited, Nigerian affiliate of British energy firm, Savannah Energy Plc, has signed an addendum to its existing Interruptible Gas Sales Agreement (IGSA) with First Independent Power Limited (FIPL), a subsidiary of Sahara Power Group.
The deal will see the firm increase gas supply to FIPL to 65 million standard cubic feet per day (mmscf/pd).
The initial sales agreement, which Savannah said was 35mmscf, was originally signed on January 28, 2020 and was being supplied to FIPL’s Afam Power plant in Rivers State.
Savannah said in a statement that under the terms of the addendum, FIPL will be able to increase the quantity of gas purchased from Accugas to up to 65 mmscfpd so as to also supply the Trans Amadi and Eleme Power plants also in Rivers State, in addition to its Afam Power plant.
FIPL’s power plants have a total generation capacity of 391MW, with the Trans Amadi and Eleme plants having generation capacities of 136MW and 75 MW, respectively.
Commenting on the deal, Chief Executive Officer, Savannah Energy, Andrew Knott, was quoted in the statement to have said that: “Accugas has recorded growth in total revenues from gas sales for each of the last five years, with a realised Compound Annual Growth Rate (CAGR) of 15 per cent.
“New contracts, such as this announcement provide the basis for us to continue this growth into the future and we look forward to continue working with the Sahara Group on this and potentially other projects in the future.”
Also, Group Managing Director, Sahara Power Group, Mr. Kola Adesina, stated: “At Sahara, we believe that with Savannah we have a partnership that works, and we are delighted to see that our beliefs are becoming a reality.
“Through this Addendum, we aim to secure the reliable supply of gas to FIPL power plants, thereby improving the health of the Nigerian Electricity Supply Industry (NESI) and as always, bringing energy to life for the everyday person whose interest we serve intentionally.”
