Savannah Energy subsidiary enters gas sales agreement
Africa-focussed Savannah Energy announced on Tuesday that its 80% indirectly-owned subsidiary Accugas has entered into a new gas sales agreement with Notore Chemical Industries.
The AIM-traded firm said Accugas would supply Notore with up to 10 million standard cubic feet of gas per day, to augment its current supplies.
It said the contracted supply was on an “interruptible and reasonable endeavours” basis, based on gas availability and nominations, for an initial term of one year with the option to extend for a mutually-agreed period.
Notore's fertiliser production plant is connected to the Accugas network via the Nigerian Gas Company pipeline from Ikot Abasi, and no further tie-in or capital expenditure would be required by Accugas to deliver gas to Notore.
Notore Chemical Industries is a Nigeria-based chemicals and infrastructure company located in the Onne Oil and Gas Free Zone area of Rivers state, in the south of the country.
Its primary business is the production of urea, ammonia and NPK-blend fertilisers and sale to the Nigerian and international markets.
Notore's facility has a production capacity of 1,500 metric tons per day of urea and 1,000 tonnes per day of ammonia.
“I am pleased to welcome Notore as a new gas customer to Accugas, representing our 10th customer site in total, versus three at the time of our acquisition of the Accugas business in 2019,” said chief executive officer Andrew Knott.
“We look forward to developing our working relationship with Notore over the course of the coming months and years.”
At 1421 BST, shares in Savannah Energy were up 3.95% at 31.55p.
Reporting by Josh White at Sharecast.com.