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Savannah strikes CNG deal in Nigeria

NIGERIA/EGYPT AFRICA-FOCUSED Savannah Energy has “significantly extends the reach of [its] existing
struck a deal to sell gas to Egyptian firm Mulak 260-km pipeline network into light industrial
Energy, for compression for subsequent use in and even domestic power generation without
power generation. the need for further investment in pipelines,”
In a statement on February 5, Savannah the London-listed company’s CEO, Andrew
said its subsidiary Accugas would deliver gas to Knott, said.
Mulak over a seven-year period from its majori- Mulak CEO Omar Hassan added that his
ty-owned Uquo field. Shipments will reach up to company was “certain that gas will play a central
2.5mn cubic feet per day (25.8mn cubic metres role in fuelling Nigeria’s growth.”
per year) during the first two years, while vol- “We foresee potential that this agreement
umes in the remaining five years are yet to be with Accugas-Savannah will serve as a platform
decided. for increased co-operation between our two
Mulak, a subsidiary of Egypt’s Mansour con- companies as we work to achieve our shared
glomerate, will compress the gas and ship it to vision of bringing ever larger volumes of gas
industrial customers in Nigeria’s River State, in to the Nigerian market, creating value for our
order to substitute diesel in small-scale gener- shareholders and ultimately the industries and
ators. These generators are supplied by Man- people of Nigeria,” he said.
trac Group, another member of Mansour and Nigeria is on a push to commercialise more
a major dealer in Caterpillar machinery, power of its substantial gas reserves by expanding the
systems and equipment. role of the fuel in power generation, vehicle
Mulak is in “a unique position to exploit the transport, petrochemicals and various other
synergies with Mantrac’s business in Nigeria” sectors.
through the switching of around 400 MW of Savannah produced some 102.9mn cubic feet
diesel-fired generation with compressed nat- per day (1.06 bcm per year) of gas at the Uquo
ural gas (CNG) fuelled power, Savannah said. field in 2020, marking a 16.6% increase year on
These conversions will reduce the energy costs year. The company also produced a small quan-
of Mantrac’s customers by 40% and their carbon tity of condensate at Uquo and some oil at the
footprint by 30%. Stubb Creek marginal deposit. Savannah also
By entered the CNG market, Savannah has exploration assets in neighbouring Niger. ™

Accugas will supply Mulak with gas from the Uquo field (Photo: Savannah Energy)

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