Savannah Energy says it has signed a new gas sale agreement with TransAfam Power through its subsidiary, Accugas.
The company in a statement said the deal will speed up gas provision for use at the company’s power plant in Rivers State.
TAPL is a licensed power generation company in Nigeria and a core investor in the Afam Power Plc and Afam Three Fast Power plants located in Okoloma, Rivers State, together with total installed capacity of 966MW.
In a release on Monday, the company said Accugas is in deal so as to be able to supply up to 35 MMscfpd of gas on an interruptible basis for an initial term of three months, with the option to extend for a mutually agreed period.
The plant is connected to the Accugas network via the Nigerian Gas Company pipeline from Ikot Abasi and no further tie-in or capital expenditure is required by Accugas to deliver gas to TAPL
Savannah Energy CEO, Andrew Knott, stated that , “I am delighted to add TAPL as a new customer of Accugas. This represents the second new GAS we have signed this year bringing our total number of gas customers to seven, as we deliver in our objective to be the gas supplier of choice to the power sector in Nigeria.
Vincent Ozoude, MD/CEO of TransAfam Power Limited said: ” We are excited to start this journey with Accugas Limited which support our core purpose of improving lives and transforming Nigeria. This relationship with Accugas should go a long way in boosting our plant capacity recovery programme and improve power generation in the country.