Power Minister Commends Savannah on Energy Sector Contributions

Power Minister Commends Savannah on Energy Sector Contributions

The Honourable Minister of Power, Chief Adebayo Adelabu, has commended Savannah Energy, the British independent energy company focused around the delivery of Projects that Matter, for its investment in Nigeria’s energy sector, as well as its contribution to the growth of the domestic gas market to support national development.

The Minister made the commendation during a recent visit to the Uquo Central Processing Facility (“CPF”) in Akwa Ibom State, which is owned by Accugas Limited, a subsidiary of Savannah Energy.

Chief Adelabu described the Uquo gas facility as a huge investment and evidence of Savannah Energy’s confidence in Nigeria’s economy. He appealed to other companies in the gas industry to emulate Accugas so that Nigeria’s power challenges can be addressed.

Chief Adelabu said: “We are calling on other companies to emulate the activities of Accugas so that the unreliable supply of gas that we have will be a thing of the past. They have been tried, they have been tested and they are trusted. One other thing I also noted is their investment in a new gas compressor to boost pressure for gas supplies. It is a significant investment. We really appreciate it, and we will continue to be partners”, the Minister said.

Regarding the company’s social impact projects, Chief Adelabu said: “I want to also thank you for the jobs you have created directly and indirectly, the CSR projects executed and for the safeguarding of the environment. We don’t want you to relent. We want you to do more to continue your expansion plans, so that you can supply more gas.”

The Managing Director of Savannah Energy, Nigeria, Pade Durotoye, said that the company supports the Federal Government’s adoption of natural gas as a transition fuel in Nigeria’s net-zero pathway, particularly power generation. This is why Accugas has invested in building a nameplate 200 MMscfpd processing facility, supported by a ~260km pipeline network solely for the domestic market.

Durotoye said: “All our gas is consumed domestically, with 80% being sold to power generation companies, which account for approximately 20% of Nigeria’s thermal generation capacity for the grid. In addition, the gas supplied by Accugas enables about 10% of the country’s cement production.”

He stated that Accugas has invested an additional US$45m 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 to a maximum of 81 bar gauge. The project is expected to be completed and operational later this year.