ENEO Cameroon S.A. (ENEO), the Cameroon power utility, will pay an interim gas price of $7.4 per thousand cubic feet of gas to gas producer Victoria Oil &Gas until 31 December 2017.
This is part of the terms that the two companies inked in the deal to extend the current gas supply agreement until the end of 2017.
ENEO Cameroon is the energy joint venture between UK Group Actis and the Cameroon Government. The extension will enable ENEO and the VOG’s100% owned subsidiary, Gaz du Cameroun S.A. (GDC) to optimise all technical and financial elements of a long-term gas supply arrangement aimed at increasing the current contractual power supply of 50MW to beyond 100MW. The take-or-pay components will remain in place.
VOG says that it continues to prove its commitment to Cameroon and have been proud to help provide the Douala region with additional power to meet fast growing demands.
The drilling of the two new wells at Logbaba continues.
“VOG and ENEO are working to create long term solutions, using natural gas for power generation beyond 100MW”, says Ahmet Dick, VOG’sCEO. “We believe there is demand for more than 150MMscf/d in Douala and we are in discussions with third party IPP licensees to supply gas.”