A British firm, Savannah Energy says its Accugas subsidiary has entered into a new gas sales agreement with Mulak Energy Limited to boost gas supply in Nigeria.
It said Mulak, a member of the Mansour Group, an Egyptian multinational conglomerate, initially planned to distribute Compressed Natural Gas to its industrial customers in Rivers State.
The firm said in a statement on Friday that the CNG would be substituted for diesel in generators supplied by the Mantrac Group, also a member of the Mansour Group.
It said, “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.”
According to the statement, the agreement for the supply of gas to Mulak’s CNG Nigerian project represents Savannah’s first gas-to-CNG sales agreement.
“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,” it said.
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