(Sharecast News) - Africa-focussed Savannah Energy announced on Friday that its 80%-owned subsidiary Accugas has signed an addendum to its existing interruptible gas sales agreement with First Independent Power (FIPL), originally signed in January 2020.
The AIM-traded firm said Accugas currently supplies up to 35 million standard cubic feet of gas per day to FIPL's Afam power plant.
Under the terms of the addendum, FIPL would be able to increase the quantity of gas purchased from Accugas up to 65 million standard cubic feet per day, so as to also supply the Trans Amadi and Eleme power plants, in addition to the Afam plant.
FIPL's power plants have a total generation capacity of 391 MW, with the Trans Amadi and Eleme plants having generation capacities of 136MW and 75 MW respectively.
All three plants are located in Rivers State, Nigeria.
Savannah said FIPL is an affiliate company of the international energy and infrastructure conglomerate, the Sahara Group.
"Accugas has recorded growth in total revenues from gas sales for each of the last five years, with a realised compound annual growth rate of 15%," said chief executive officer Andrew Knott.
"New contracts, such as this morning's announcement provide the basis for us to continue this growth into the future and we look forward to continuing working with the Sahara Group on this and potentially other projects in the future."
At 1544 BST, shares in Savannah Energy were up 4.21% at 34.39p.
Savannah Energy (SAVE)