Savannah Energy Plc has announced that its Accugas subsidiary is now into a new gas sales agreement (GSA) with the Central Horizon Gas Company (CHGC), a subsidiary of Axxela Limited, to aid gas distribution in the Port Harcourt industrial hub.
Under the terms of the GSA, CHGC can nominate to be delivered up to a maximum daily quantity of 5 MMscfpd.
First gas deliveries are expected to commence within the next 12 months and are dependent on CHGC completing certain works to connect to the third-party gas delivery infrastructure. Accugas is not expected to incur any additional capital expenditure in this regard.
CEO of Savannah Energy, Andrew Knott said: “We are delighted to announce this new gas sales agreement with CHGC and the Axxela Group. This transaction once again demonstrates Accugas’ position as a gas supplier of choice in South East Nigeria. We look forward to a successful future partnership with both CHGC and the wider Axxela Group.”
CHGC operates a 17km gas pipeline infrastructure network with a throughput capacity of 50 MMscfpd, which provides natural gas to industrial and commercial customers in the Trans Amadi Industrial Area of Port Harcourt as well as the Greater Port Harcourt Area, Nigeria.
CHGC is majority-owned and controlled by Axxela, which delivers natural gas to over 185 industrial and commercial customers via its gas infrastructure network across cities in Southern Nigeria including Lagos and Port Harcourt.
Source: Guardian
