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.
Accugas currently supplies up to 35 MMscfpd of gas to FIPL’s Afam power plant. 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, in addition to its Afam power plant. FIPL’s power plants have a total generation capacity of 391 MW, with the Trans Amadi and Eleme plants having generation capacities of 136MW and 75 MW, respectively. All three plants are located in Rivers State.
FIPL is an affiliate company of the Sahara Group, a leading international energy and infrastructure conglomerate with operations in over 42 countries across Africa, the Middle East, Europe and Asia.
Andrew Knott, CEO of Savannah Energy, said:
“Accugas has recorded growth in Total Revenues from gas sales for each of the last five years, with a realised CAGR of 15%. New contracts, such as this morning’s 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.”
Kola Adesina, Group Managing Director, Sahara Power Group, said:
“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 and as always, bringing energy to life for the everyday person whose interest we serve intentionally.“