The Federal Government has praised British independent energy company, Savannah Energy for its substantial investment in Nigeria’s energy sector, saying that it appreciates what the company is doing, and encourages the company to sustain it, according to a statement by the firm’s Communications Manager, Mr. Okwudili Onyia.
During a recent visit to the Uquo Gas Central Processing Facility in Akwa Ibom State, the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo said that Savannah’s substantial investment to date has helped in boosting domestic gas supply in the country, where the company now supplies gas enabling approximately 20 per cent of Nigeria’s thermal power generation capacity.
Uquo Gas Central Processing Facility is owned by Accugas Limited, a subsidiary of Savannah.
Commenting 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”.
The Managing Director of Savannah Energy Nigeria, Mr. Pade Durotoye, who accompanied the minister on the visit, explained that the company, through Accugas Limited, has invested over $1.6 billion in gas processing and transportation infrastructure to support the domestic market since 2014. He further 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 (million standard cubic feet per day) each and is designed to increase the gas export pressure. The project is expected to be completed and operational later this year”.
Durotoye added that Savannah strongly 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.
He 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 per cent of the country’s cement production.
