GCISavannah Energy commences Trans Amadi gas sales
( ) announced this morning that its 80%-owned subsidiary Accugas Limited has commenced gas sales to First Independent Power Limited's ('FIPL') Trans Amadi power plant in Port-Harcourt, Nigeria. FIPL is an affiliate of the Sahara Group, which is a major international energy and infrastructure conglomerate operating in 42 countries in the EMEA region.
The Trans Amadi plant is capable generating 136 MW, which had previously been limited by gas availability. The new agreement solves this issue and the plant resumed normal operations as of 19 June 2022.
previously exercised an addendum to its contract with FIPL, allowing the latter to increase the amount of gas purchased to 65 million standard cubic feet per day (MMscfpd) from 35 MMscfpd and supply its Trans Amadi, Eleme, and Afam power plants. The three plants have a combined generation capacity of 391 MW.
Earlier this month Savannah published FY21 results and announced the appointment of a new CFO. FY21 results were positive with revenue up 6.8% to £230m due to higher gas prices, exceeding previous guidance. Roughly the same revenues are expected in FY22. Average gross daily production from the company's Nigerian operations was 14% higher YoY, and the average realised gas price of $4.19/standard cubic foot was 6% higher YoY.
View from Vox:
's 80%-owned Accugas has recorded growth in revenues from gas sales for each of the last five years, with an impressive realised CAGR of 15%. Today's news, combined with new acquisitions in Chad and Cameroon on track for Q322, indicate the company is positioned for continued growth.
Moreover, is growing its renewable energy division, with several new large-scale greenfield opportunities under review and negotiation in Chad and Niger. In Chad, the company has signed a deal with the Ministry of Petroleum and Energy for the development of up to 500 MW in renewable energy projects. In Niger, the company is developing the 250 MW Parc Eolien de la Tarka Project. CEO Andrew Knott sees Africa's transition to renewable energy as playing a significant role in 's future growth.
Investors have been rewarded, with 's shares up 30% in the past 3 months and 100% in the past year.
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