With 113.5Millon standard cubic feet per day (113.5MMscf/d) averaged in 1H 2020, Accugas Limited has indicated itself as one of the top four natural gas suppliers to the Nigerian economy. The company is a subsidiary of the British headquartered Savannah Petroleum, which bought over the assets of Seven Energy in Nigeria. Accugas’ main hydrocarbon property is the Uquo gas field in Oil Mining Lease (OML) 13 onshore eastern Niger Delta basin.
Accugas’ competitors are Chevron. NDWestern and Seplat, the country’s biggest suppliers of natural gas to the domestic market. But unlike Accugas, all of them are in joint venture with either the Nigerian National Petroleum Corporation or its operating subsidiary, the NPDC. Between January and June 2020, the average gross natural gas output of these three JVs ranged from 222 to 320MMscf/d. This means that, on an equity basis, the output of Chevron, Seplat and NDWestern ranged between 99 and 144MMscf/d. By comparison Accugas’ 113.5MMscf/d average, in that period, is competitive.
The company increased its average gross daily natural gas production from the Uquo gas field by 22.4% compared to the same period last year, from 92.7 MMscf/d (15.4 KBOEPD) to 113.5 MMscf/d (18.9 KBOEPD).
“In H1 2020, Accugas increased gas supply to the Nigeria power sector by 35% versus Q4 2019. This compares to wider industry performance which saw the gas shortage to supply the Nigerian power grid increasing by 33% versus Q4 2019”, Savanah Petroleum says in a statement.
The company achieved an all-time Nigerian Assets gas production record of 177 MMscf/d on 30 May 2020. While Accugas’ customers achieved an all-time record peak contribution of 11.5% of Nigeria’s electricity generation or 486MW on 23 May 2020, with the contributed electricity being exclusively generated from Accugas sales gas.
On 31 January 2020, Accugas entered into the first new gas sales agreement for the business in over five years with First Independent Power Limited, an affiliate company of the Sahara Group, for the provision of gas to the FIPL Afam power plant. Accugas is in the process of working with FIPL to validate the third-party infrastructure required to enable the commencement of gas sales.
In June 2020, Accugas signed a term sheet with a significant new industrial gas sales customer, a subsidiary of a well-respected international company, for an initial quantity of up to 5 MMscfpd of gas for an initial five-year period.