- Accugas invests $45 million in a new gas compression system at its Uquo facility, boosting export capacity and pressure.
- Minister of Power Adebayo Adelabu commends Savannah Energy’s contributions to Nigeria’s energy sector and urges other companies to follow suit.
- Accugas supplies 80% of its gas to power generation, supporting 20% of Nigeria’s thermal power capacity and 10% of cement production.
Accugas Limited, a subsidiary of Savannah Energy, has invested $45 million in a new compression system at its Uquo facility. The system features two parallel trains with a combined capacity of 320 million standard cubic feet per day (MMscfpd) and will boost gas export pressure to 81 bar gauge. Accugas plans to bring the project online later this year.
This investment marks a crucial step in Accugas’ ongoing efforts to ensure a reliable gas supply for its customers. The Uquo facility plays a vital role in Nigeria’s energy sector, with Accugas focusing on domestic gas consumption. The company developed a 200 MMscfpd processing facility supported by a 260km pipeline network that serves only the domestic market.
During a visit to the Uquo Central Processing Facility, the Minister of Power, Chief Adebayo Adelabu, praised Savannah Energy Nigeria’s Managing Director, Pade Durotoye, for the company’s commitment to Nigeria’s energy transition. Durotoye emphasised the importance of natural gas as a transition fuel, particularly for power generation.
Accugas supplies 80% of its gas to power generation companies, contributing to about 20% of Nigeria’s thermal power capacity. Additionally, the gas provided by Accugas supports approximately 10% of the country’s cement production.
Minister Adelabu commended Savannah Energy’s significant investments in Nigeria’s energy sector and noted their positive impact on the domestic gas market. He described the Uquo facility as a strong indicator of Savannah Energy’s confidence in Nigeria’s economy. He urged other companies in the gas industry to follow Accugas’ example to help solve Nigeria’s power challenges.
“We urge other companies to emulate Accugas so that we can resolve our gas supply challenges,” Adelabu said. “Accugas has been tried, tested, and trusted. Their investment in a new compressor to increase pressure is significant, and we appreciate it. We will continue to partner with them.”
The minister also recognised Accugas’s social impact, including job creation and corporate social responsibility projects. He encouraged the company to expand its operations to increase domestic gas supply.
In response, Durotoye reiterated Accugas’ dedication to supporting the federal government’s energy goals. He highlighted the company’s commitment to ensuring all its gas serves the domestic market, boosting local power generation and industrial production.
Accugas continues strengthening its role in Nigeria’s energy landscape as it prepares to bring the new compression system online. The investment enhances the company’s market position and supports Nigeria’s goal of achieving a more reliable and sustainable energy supply.
The project at Uquo forms part of Savannah Energy’s broader strategy to invest in infrastructure that meets Nigeria’s growing energy needs. With the completion of the compression system later this year, Accugas plans to increase its contribution to the country’s energy security.