Accugas Limited, the Nigerian subsidiary of 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 agreement calls for the company to increase its gas supply to FIPL to 65 million standard cubic feet per day (mmscf/pd).
Savannah stated that the initial sales agreement, which was 35mmscf, was signed on January 28, 2020 and was being supplied to FIPL’s Afam Power plant in Rivers State.
Savannah stated in a statement that under the terms of the addendum, FIPL will be able to increase the amount of gas purchased from Accugas to up to 65 mmscfpd in order to supply the Trans Amadi and Eleme Power plants as well.
The total generation capacity of FIPL’s power plants is 391MW, with the Trans Amadi and Eleme plants having generation capacities of 136MW and 75MW, respectively. In a statement, Savannah Energy’s Chief Executive Officer, Andrew Knott, was quoted as saying:
“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%.” New contracts, such as this announcement, provide the foundation for us to continue our growth in the future, and we look forward to continuing to collaborate with the Sahara Group on this and possibly other projects in the future.”
Mr. Kola Adesina, Group Managing Director, Sahara Power Group, added, “At Sahara, we believe that we have a working partnership with Savannah, and we are delighted to see that our beliefs are becoming a reality.”
“Through this Addendum, we intend to secure a 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 interests we intentionally serve.”