Dangote To Receive Thermal Gas From Gaz du Cameroun - Africa’s premier report on the oil, gas and energy landscape.

Dangote To Receive Thermal Gas From Gaz du Cameroun

GDC charges $16/MMBtu, with prices fixed for five years

Dangote Cement has penned an agreement with Gaz du Cameroun, for the provision of gas fired thermal power at its plant in Douala, Cameroon. The cement factory is a brand new one with an installed capacity of the annual production capacity of is 1.6 million tons.

The gas connection is anticipated in the second half of 2014.

Gaz du Cameroun is a subsidiary of Victoria Oil &Gas, a British minnow which operates the Logagba gas field and gas processing plant in the country and has connected industries in Cameroon’s major commercial city with fuel. The company executes gas sales agreements with customers to sell gas at $16/mmbtu, with prices fixed for five years and the contract term lasting 20 years.

Gas consumption by Dangote is expected to range from 0.4 to 0.5MMscf/d. The agreement with the Cement firm is one of the company’s two key highlights of January 2014. Gaz du Cameroun also signed a collaboration agreement with AES-Sonel, a Cameroonian electricity utility, for conversion of Heavy Fuel Oil (HFO) to gas power generation. GDC and AES-Sonel will work on a technical and operating plan to progressively replace HFO and LFO power generation stations with gas fired generation. “This collaboration on power generation is a first in Cameroon”, GDC says.  It is planned that the company “will initially supply temporary units with gas, with a combined capacity of 45MW. This first stage is expected to be online during second quarter of 2014 with anticipated gas consumption in the range of 2.6 to 5.9MMscf/d. AES-Sonel is preparing a study of the conversion of the 13MW Logbaba  and the 86MW Dibamba Heavy Fuel Oil power plants to gas”.

The company anticipates a connection review and commissioning of gas supply to Socaver, a local glass manufacturer, by the end of January 2014.

Gas du Cameroun has developed a local market for gas with customers including breweries, metal foundries, food processing plants and packaging facilities. Gas Sales Contracts have been signed throughout 2010-2013 with numerous industrial firms including some multinational firms. GDC anticipates daily sales volumes reaching 12 MMscf/d by December 2013 with an estimate of total gas demand to in excess of 100 MMscf/d within five years.

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1 comment

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