Page 15 - DMEA Week 06 2021

DMEA FUELS DMEA

Savannah strikes CNG deal in Nigeria

NIGERIA NIGERIA-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
Savannah is entering Energy, for compression for subsequent use in and even domestic power generation without
the CNG market. power generation. the need for further investment in pipelines,” the
In a statement on February 5, Savannah London-listed company’s CEO, Andrew Knott,
said its subsidiary Accugas would deliver gas to 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 genera- shareholders and ultimately the industries and
tors. These generators are supplied by Mantrac people of Nigeria,” he said.
Group, another member of Mansour and a Nigeria is on a push to commercialise more
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. ™

TRANSPORT

Iran to link Qeshm Island to gas grid

IRAN THE National Iranian Gas Co. (NIGC) is mov- capacity, raising the total storage capacity to
ing forward with the construction of a new direct around 103mn barrels.
The 59-km pipe will gas pipeline connecting the southern island of The first phase of Direstan terminal was
be the first conduit to Qeshm in the Indian Ocean with the mainland. inaugurated by President Hassan Rouhani and
connect the free trade The 59-km pipeline will be the first conduit will contribute 3.24mn barrels from six tanks.
zone. to connect the free trade zone which recently Construction on the $178mn project began in
became a new petrochemical hub, allowing December 2019 and has been carried out by local
access to international markets without travers- contractors in the private sector.
ing the Strait of Hormuz. Recently the island was The second phase will double capacity
also connected by bridge to the mainland. through the addition of another seven tanks and
“For the construction of this gas pipeline, is anticipated to be finished during Q1 2021.
about [$30mn] and about 2 trillion rials of finan- In September, it was reported that the ter-
cial resources have been provided, while the minal would be connected to the Gevarzin gas
parts and pipes have been supplied, the contrac- processing plant via a 22-km pipeline, allowing
tor has been selected and the construction of the for the direct transfer of oil and refined products
pipeline has started,” Mohsen Mazlum Farsibaf, between Qeshm and the Bandar Abbas and Per-
direct of research and technology at NIGC, told sian Gulf Star refineries.
IRNA on February 8. In 2018, the Iranian Offshore Oil Co.
The pipeline will connect to the Direstan (IOOC) inaugurated a gas plant on Qeshm to
terminal being built on a 1.8-square km site on process 80mn cubic metres per day of natural
the island’s southern edge that will add around gas which was previously flared at the Hengam
6.5mn barrels to Iran’s onshore liquids storage oilfield. ™

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