e Following a new gas sales agreement between Savannah Energy, the African-focused British independent energy company sustainably developing high quality, high potential energy projects in Nigeria and Niger, and Mulak Energy, the Chief Executive Officer of Mulak, Omar Hassan, has described it as an opportunity to explore Nigeria’s gas potential and future.
Omar Hassan, CEO of Mulak Energy said, “Mulak Energy is extremely pleased to have entered into this gas sales agreement with Accugas- Savannah Energy. As part of the Mansour Group, Mulak Energy strongly believes in Nigeria’s potential and future.
Hassan, while relishing the new deal said he was certain that gas would play a central role in fuelling Nigeria’s growth and prosperity for the foreseeable future, saying Mulak was proud to be participants in this important development.
“We foresee potential that this agreement with Accugas- Savannah will serve as a platform for increased cooperation between our two companies as we work to achieve our shared vision of bringing ever larger volumes of gas to the Nigerian market creating value for our shareholders and ultimately the industries and people of Nigeria,” he said.
According to details of the agreement, it is initially for a seven-year term. It envisages the supply of gas produced by Savannah’s majority-owned Uquo field for an initial twoyear period on an interruptible basis (the “Interruptible Gas Delivery Period”) and the subsequent five years on a firm contract basis (the “Firm Delivery Period”).
During the Interruptible Gas Delivery Period, Mulak is able to nominate a maximum daily quantity of up to 2.5 MMscfpd. A report on the agreement said volumes in the firm delivery period would be agreed by the parties before the end of the interruptible gas delivery period.
Mulak is a member of the Mansour Group, the leading Egyptian multinational conglomerate with operations in more than 100 countries and annual revenues exceeding $7.5 billion.
The agreement for the supply of gas to Mulak’s Compressed Natural Gas (CNG) Nigerian project represents Savannah’s first Gas-to-CNG sales agreement. Mulak initially plans to distribute CNG to its industrial customers in Rivers State with the CNG to be substituted for diesel in generators supplied by the Mantrac Group, also a member of the Mansour Group and one of the world’s largest dealers in Caterpillar machinery, power systems and equipment. CEO of Savannah Energy, Andrew Knott, said: “We are delighted to announce this new gas sales agreement with Mulak Energy and the Mansour Group. This recognises,
Accugas’ status as the most reliable supplier of natural gas in Nigeria. “Our first Gas-to-CNG agreement is hugely exciting as it represents Savannah’s entry into the compressed natural gas market, which we see as offering strong growth potential for our business over the course of the next decade.
The CNG market significantly extends the reach of our existing 260km pipeline network into light industrial and even domestic power generation without the need for further investment in pipelines.
“For example, the Mansour Group subsidiary, Mantrac, currently has an installed customer base of approximately 400MW of diesel-fuelled power generation, which has grown every year for the last decade.
I would like to thank the Mansour Group for choosing to partner with Accugas and we look forward to providing them, and their customers, with a reliable, lower cost source of energy for power generation with an estimated 30 per cent reduction in the carbon footprint of their existing diesel generators.”