Nigeria-based integrated agro-allied, chemicals and infrastructure company, Notore Chemical Industries Plc, has sealed a new gas sale agreement with Accugas Limited, a subsidiary of Savannah Energy Plc, amid supply shortfalls.
A statement on Tuesday by Savannah Energy said Accugas would supply Notore with up to 10 million standard cubic feet per day (MMscfpd) of gas to augment its current supplies.
“The contracted supply is on an interruptible and reasonable endeavours basis, based on gas availability and nominations, for an initial term of one year, with the option to extend for a mutually agreed period.
“Notore’s fertiliser production plant is connected to the Accugas network via the Nigerian Gas Company pipeline from Ikot Abasi and no further tie-in or capital expenditure is required by Accugas to deliver gas to Notore,” it stated.
Nigeria has continued to experience shortage of gas supply in recent times, as about half of local needs are meant leading to the spike in gas price.
Notore has a production capacity of 1,500 metric tons (MT) per day of urea and 1,000 MT/day of ammonia.
The Chief Executive Officer (CEO), Savannah Energy, Andrew Knott, said the company was pleased to welcome Notore as a new gas customer to Accugas.
“We look forward to developing our working relationship with Notore over the course of the coming months and years,” Knott added.
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