LONDON (Alliance News) - Victoria Oil & Gas PLC on Monday said its Gaz du Cameroun subsidiary has completed the laying of the pipeline to the boundaries of the ENEO Power Station properties at Bassa and Logbaba ahead of schedule.
The pipeline is currently being tested and Victoria expects this testing to complete next week.
ENEO will require both the 20 megawatt Bassa power station and and 30 megawatt Logbaba power station to be on line and delivering 50 megawatt by the end of the first quarter. Gas du Cameroun expects to complete the work prior to this deadline, Victoria said.
In December, Victoria's Gaz du Cameroun signed a major gas sales agreement with utility company ENEO Cameroon to supply the Bassa and Logbaba power stations.
Gas will be supplied to Logbaba and Bassa under a two-year agreement at a fixed price of USD9 per million British Thermal Unit. Victoria said the gas consumption is expected to be 10.1 million square feet a day, with a 90% minimum take or pay component in the dry season and 30% in the wet season.
Victoria shares were up 7.1% to 58.35 pence on Monday morning, one of the best performers in the AIM All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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