Nigeria has commended Savannah Energy for its substantial investment in Nigeria’s energy sector to date.
Through the minister of petroleum resources (Gas), Ekperikpe Ekpo, the federal government charged the company to sustain the investment initiative.
The British independent energy company focuses on the delivery of projects that matter in Nigeria and other African countries.
Ekpo made the commendation during a recent visit to the Uquo Gas Central Processing Facility in Akwa Ibom State, which is owned by Accugas Limited, a subsidiary of Savannah.
He said Savannah’s substantial investment to date has helped in boosting domestic gas supply in the country, where it now supplies gas enabling approximately 20 percent of Nigeria’s thermal power generation capacity.
On the importance of gas to the Nigerian economy, the minister stated that President Bola Tinubu is intent on developing the gas sector to drive the Nigerian economy.
He said, “The president is very intentional and strategic about developing the gas sector to drive the economy of this nation. We know that if the economy of Nigeria is driven by gas, it will make things easier and that is the target of the ‘Decade of Gas’ initiative. Our target is to make sure that by 2030, the Nigerian economy will be driven by gas.”
I’m a statement made available to LEADERSHIP Friday by the company yesterday in Abuja, it said the managing director of Savannah Energy, Nigeria, Pade Durotoye, accompanied the minister during the Uquo visit.
Durotoye explained that the company, through Accugas Limited, had invested over $1.6 billion in gas processing and transportation infrastructure to support the domestic market since 2014.
He said, “Accugas is also investing an additional $45 million in a new compression system at the Uquo facility that will allow the company to continue to provide reliable gas supplies to customers for years to come.
“The system comprises two parallel trains with a capacity of 160 MMscfpd each and is designed to increase the gas export pressure. The project is expected to be completed and operational later this year,” he said.
Durotoye added that Savannah supports the federal government’s adoption of natural gas as a transition fuel in Nigeria’s net-zero pathway, particularly for power generation, adding that this is why Accugas has invested in building a nameplate 200 MMscfpd gas processing facility, supported by a ~260km gas pipeline network solely for the domestic market.
The firm chief stated that all the company’s gas is consumed domestically, with 80 per cent being sold to thermal power generation companies, and the remainder to a range of large industrial customers, such as cement producers, where, for example, Accugas enables about 10 percent of the country’s cement production.
