Accugas signs new NGSPA with AMOCON
ORITSEGBUBEMI OMATSEYIN
Lindirectlyagos – Accugas, an 80% owned subsidiary of Savannah Energy Plc, the British independent energy company focused on the delivery of projects that matter, has announced it has entered into a Natural Gas Sales and Purchase Agreement, NGSPA, with Amalgamated Oil Company Nigeria Limited, AMOCON, for gas produced in the OML 156 sole risk petroleum lease area, for onward sale to its customers.
Accugas is focused on the marketing, processing, distribution, and sale of gas to the domestic Nigerian market. In 2022, Accugas processed and transported an average of 145 million standard cubic feet per day, MMscf/d, of gas through its pipeline network, with all gas sourced from Savannah’s 80% indirectly owned Uquo gas field.
Gas is processed at Accugas’ 200 MMscf/d Uquo central processing facility, more popularly known as Uquo CPF, for onward transportation to customers through its c.260km, up to c.600 MMscf/d transportation capacity pipeline network.
The Natural Gas Sales and Purchase Agreement with AMOCON represents the first time Accugas will be supplying gas to its customers that has not been produced from the Uquo gas field. Gas purchased from AMOCON does not require processing by Accugas and therefore does not utilise available capacity at the Uquo CPF.
Under the terms of the NGSPA, Accugas has agreed to purchase up to 20 MMscfpd of gas from AMOCON over the next ten years. The cost of
connection to Accugas’ infrastructure has been borne by AMOCON, with the gas being delivered from a new AMOCON owned 140m pipeline connecting AMOCON’s Early Production Facility, EPF, to Accugas’ existing pipeline network.
Under the terms of the new GSPA, all capital expenditure required for the AMOCON EPF-to-Accugas pipeline is borne by AMOCON and Accugas has not incurred any additional capital expenditure concerning the project.
The contract is already operational and the gas supply to Accugas has stabilised at approximately 20 MMscf/d.
Andrew Knott, CEO of Savannah Energy, said: “Since we announced our intention to acquire our ownership interest in Accugas in 2017, Accugas has recorded six consecutive years of growth in total revenues at a compound annual growth rate of 21%. We are now contracted to supply gas to up to 24% of Nigeria’s thermal power generation