{"id":9834,"date":"2021-02-08T12:02:38","date_gmt":"2021-02-08T12:02:38","guid":{"rendered":"https:\/\/oilnewskenya.com\/?p=9834"},"modified":"2021-02-08T12:02:38","modified_gmt":"2021-02-08T12:02:38","slug":"accugas-first-gas-to-cng-sales-agreement-announced-with-mulak-energy","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/accugas-first-gas-to-cng-sales-agreement-announced-with-mulak-energy\/","title":{"rendered":"Accugas’ First Gas-to-CNG Sales Agreement announced with Mulak Energy"},"content":{"rendered":"

Savannah Energy\u00a0 has announced that its Accugas subsidiary has entered into a new gas sales agreement (GSA) with Mulak Energy Limited.<\/span><\/p>\n

The GSA is initially for a seven-year term. It envisages the supply of gas produced by Savannah’s majority-owned Uquo field for an initial two-year period on an interruptible basis (the “Interruptible Gas Delivery Period”) and the subsequent five years on a firm contract basis (the “Firm Delivery Period”). During the Interruptible Gas Delivery Period, Mulak is able to nominate a maximum daily quantity of up to 2.5 MMscfpd. Volumes in the Firm Delivery Period will be agreed by the parties before the end of the Interruptible Gas Delivery Period. The GSA is priced to reflect Mulak’s status as an industrial customer; Accugas, therefore, expects to see its weighted average gas sales price realisation increase as a result of this contract, without the need for any incremental capital expenditure beyond our previously announced plans.[2]<\/a><\/span>\u00a0Sales under the GSA benefit from a bank guarantee arrangement from an investment grade credit rated international bank.<\/span><\/p>\n

Mulak is a member of the Mansour Group, the leading Egyptian multinational conglomerate with operations in more than 100 countries and annual revenues exceeding US$7.5 billion. The agreement for the supply of gas to Mulak’s Compressed Natural Gas (“CNG”) Nigerian project represents Savannah’s first Gas-to-CNG sales agreement. Mulak initially plans to distribute CNG to its industrial customers in Rivers State with the CNG to be substituted for diesel in generators supplied by the Mantrac Group, also a member of the Mansour Group and one of the world’s largest dealers in Caterpillar machinery,\u00a0power systems and equipment.\u00a0Mulak is in a unique position to exploit the synergies with Mantrac’s business in Nigeria through the conversion of Mantrac’s existing customer base of approximately 400MW of diesel-fuelled generators to CNG-fuelled generators. This is expected to provide Mantrac customers with up to a 40% saving in energy costs and a 30% reduction in their carbon footprint.1<\/sup>\u00a0Sales under the GSA are expected to commence in 2022 and, following the initial two-year period, Mulak has indicated that it is seeking to expand its CNG sales on a pan-Nigeria basis to Mantrac customers.<\/span><\/p>\n

Accugas continues to make good progress in relation to agreeing further potential new gas sales agreements with new customers, further updates of which will be provided as appropriate in due course.<\/span><\/p>\n

Andrew Knott, CEO of Savannah Energy, said:<\/span><\/p>\n

“We are delighted to announce this new gas sales agreement with Mulak Energy and the Mansour Group. This recognises, Accugas’ status as the most reliable supplier of natural gas in Nigeria. Our first Gas-to-CNG agreement is hugely exciting as it represents Savannah’s entry into the compressed natural gas market, which we see as offering strong growth potential for our business over the course of the next decade. The CNG market significantly extends the reach of our existing 260km pipeline network into light industrial and even domestic power generation without the need for further investment in pipelines. For example, the Mansour Group subsidiary, Mantrac, currently has an installed customer base of approximately 400MW of diesel-fuelled power generation, which has grown every year for the last decade. I would like to thank the Mansour Group for choosing to partner with Accugas and we look forward to providing them, and their customers, with a reliable, lower cost source of energy for power generation with an estimated 30% reduction in the carbon footprint of their existing diesel generators.”<\/span><\/p>\n

Omar Hassan, CEO of Mulak Energy, added:<\/span><\/p>\n

“Mulak Energy is extremely pleased to have entered into this<\/span>\u00a0gas sales agreement with Accugas-Savannah Energy. As part of the Mansour Group, Mulak Energy strongly believes in Nigeria’s potential and future. Moreover, we are certain that gas will play a central role in fuelling Nigeria’s growth and prosperity for the foreseeable future and are proud to be participants in this important development.<\/span><\/p>\n

We foresee potential that this agreement with Accugas-Savannah will serve as a platform for increased cooperation between our two companies as we work to achieve our shared vision of bringing ever larger volumes of gas to the Nigerian market creating value for our shareholders and ultimately the industries and people of Nigeria.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Savannah Energy\u00a0 has announced that its Accugas subsidiary has entered into a new gas sales agreement (GSA) with Mulak Energy Limited. The GSA is initially for a seven-year term. It … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":8740,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[8037,6098,8985,8986,8984,1749],"class_list":["post-9834","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-accugas","tag-cng","tag-mansour-group","tag-mantrac","tag-mulak-energy","tag-nigeria","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Savannah-Energy.jpg?fit=400%2C400&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-2yC","jetpack-related-posts":[{"id":12378,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-savannah-energy-makes-first-gas-sales-to-the-central-horizon-gas\/","url_meta":{"origin":9834,"position":0},"title":"NIGERIA: Savannah Energy Makes First Gas Sales to the Central Horizon Gas","author":"","date":"June 27, 2022","format":false,"excerpt":"Savannah Energy has announced that Accugas Limited, the Company's 80% indirectly owned subsidiary, has commenced gas sales to Central Horizon Gas Company Limited (CHGC), a subsidiary of Axxela Limited (Axxela), and a major gas distribution company situated in the South-South region of Nigeria. As previously announced in February 2022, Savannah\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/02\/Savannah-Energy.png?fit=458%2C358&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":12307,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-savannah-energy-signs-new-gas-sales-agreement-with-transafam-power-limited\/","url_meta":{"origin":9834,"position":1},"title":"NIGERIA: Savannah Energy Signs New Gas Sales Agreement with TransAfam Power Limited","author":"","date":"June 6, 2022","format":false,"excerpt":"Savannah Energy has announced that the Company's 80% indirectly owned subsidiary, Accugas Limited, has entered into a new gas sales agreement with TransAfam Power Limited (TAPL) in relation to the provision of gas for use at its power plants in Rivers State, Nigeria. TAPL is a licensed power generation company\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/02\/Savannah-Energy.png?fit=458%2C358&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":12590,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-new-gas-sales-agreement-signed-with-notore-chemical-industries\/","url_meta":{"origin":9834,"position":2},"title":"NIGERIA: New Gas Sales Agreement Signed with Notore Chemical Industries","author":"","date":"August 23, 2022","format":false,"excerpt":"Savannah Energy has announced that the Company's 80% indirectly owned subsidiary, Accugas Limited, has entered into a new gas sales agreement (GSA) with Notore Chemical Industries PLC. Accugas will supply Notore with up to 10 MMscfpd of gas to augment its current supplies. The contracted supply is on an interruptible\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/02\/Savannah-Energy.png?fit=458%2C358&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":12172,"url":"https:\/\/www.oilnewskenya.com\/index.php\/savannah-energy-first-independent-power-limited-gsa-extended-to-supply-trans-amadi-eleme-and-afam-power-plants\/","url_meta":{"origin":9834,"position":3},"title":"NIGERIA: Savannah Energy First Independent Power Limited GSA Extended to Supply Trans Amadi, Eleme and Afam Power Plants","author":"","date":"April 22, 2022","format":false,"excerpt":"Savannah Energy has announced that Accugas Limited, the Company's 80% indirectly owned subsidiary, has signed an addendum to its existing interruptible gas sales agreement (IGSA) with First Independent Power Limited (\"FIPL\"), originally signed on 28 January 2020. 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