Nigeria is set to receive an increase in gas supply as Savannah Energy has agreed a new gas sales understanding with Mulak Energy Limited, a member of the Mansour Group, an Egyptian multinational conglomerate, through Accugas which is one of its subsidiary with the aim of boosting gas supply in Nigeria.
The agreement for the supply of gas to Mulak’s Compressed Natural Gas Nigerian project represents Savannah’s first gas-to-CNG sales agreement, athough, Mulak had an initial plan of distributing Compressed Natural Gas to its industrial customers in Rivers State.
In a statement issued on Friday, February 5 2021, the firm stated that the CNG would be substituted for diesel in generators supplied by the Mantrac Group, also a member of the Mansour Group. It explained that “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 and the subsequent five years on a firm contract basis
“During the interruptible gas delivery period, Mulak is able to nominate a maximum daily quantity of up to 2.5 million standard cubic feet per day. Volumes in the firm delivery period will be agreed by the parties before the end of the interruptible gas delivery period
“Sales 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”