GCISavannah Energy’s Accugas to extend gas supply with addendum
(SAVE ) said its 80% indirectly owned subsidiary Accugas has signed an addendum to its existing interruptible gas sales agreement with First Independent Power.
Accugas, which currently supplies up to 35 MMscfpd of gas to First Independent Power’s (FILP) Afam power plant, originally signed the agreement with FILP on 28 January 2020.
FIPL is an affiliate company of the Sahara Group, an international energy conglomerate which holds operations in over 42 countries across Africa, the Middle East, Europe and Asia.
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. All three of these plants are located in Rivers State.
The three power plants combined have a total generation capacity of 391 MW, with the Trans Amadi and Eleme plants having generation capacities of 136MW and 75 MW, respectively.
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%.”
He highlighted to investors that new contracts such as this morning’s announcement provide the basis for Savannah to continue this growth into the future.
He added that he looks forward to continuing working with theSahara Group on this and potentially other future projects.
Commenting on this morning’s announcement, Kola Adesina, Group Managing Director at Sahara Power Group, told investors: “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.
He said: “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.”
Savannah Energy’s stock has today received an “under review” rating restated by analysts at Shore Capital in a research report issued this morning, as reported by Marketbeat Ratings.
Follow News & Updates from :
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.