Savannah starts gas sales to Trans Amadi plant in Nigeria

The AIM-traded firm executed an addendum to its gas sales agreement with FIPL in April, allowing FIPL to increase the quantity of gas purchased to up to 65 million standard cubic feet per day, to allow supply to both its Trans Amadi and Eleme power plants, as well as its Afam power plant.

FIPL is an affiliate company of the international energy and infrastructure conglomerate Sahara Group.

The company said the Trans Amadi power plant has a power generation capacity of 136 MW, although its generation capacity had recently been limited due to gas availability issues from its primary supplier.

Savannah said it started gas supply to Trans Amadi on 19 June, allowing for the immediate resumption of power generation and evacuation to Nigeria's national grid.

“I am very pleased to have commenced gas sales to the Trans Amadi power station,” said chief executive officer Andrew Knott.

“I am proud of the key role we are increasingly playing in providing power to Nigeria at this time.

“I would like to thank our partners at Sahara for continuing to choose to work with us and look forward to exploring further opportunities with them in the future.”

At 0902 BST, shares in Savannah Energy were down 1.46% at 33.65p.

Reporting by Josh White at Sharecast.com.