REG - Savannah Energy Plc - First Independent Power Limited GSA Extended

Savannah EnergyAnnouncement

22/04/2022 07:45

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RNS Number : 9791I  Savannah Energy Plc  22 April 2022

22 April 2022

 

 

Savannah Energy PLC

("Savannah" or the "Company")

 

 

First Independent Power Limited Gas Sales Agreement Extended to Supply

Trans Amadi, Eleme and Afam Power Plants with a total generation capacity of
391 MW

 

Savannah Energy PLC, the British independent energy company focused around
the delivery of Projects that Matter in Africa, is pleased to announce that
Accugas Limited ("Accugas"), the Company's 80% indirectly owned subsidiary,
has signed an addendum to its existing interruptible gas sales agreement
("IGSA") with First Independent Power Limited ("FIPL"), originally signed on
28 January 2020.

Accugas currently supplies up to 35 MMscfpd of gas to FIPL's Afam power plant.
Under the terms of the addendum, FIPL will be able to increase the quantity of
gas purchased from Accugas to up to 65 MMscfpd so as to also supply the Trans
Amadi and Eleme power plants, in addition to its Afam power plant. FIPL's
power plants have a total generation capacity of 391 MW, with the Trans Amadi
and Eleme plants having generation capacities of 136MW and 75 MW,
respectively. All three plants are located in Rivers State.

FIPL is an affiliate company of the Sahara Group, a leading international
energy and infrastructure conglomerate with operations in over 42 countries
across Africa, the Middle East, Europe and Asia.

 

Andrew Knott, CEO of Savannah Energy, said:

"Accugas has recorded growth in Total Revenues 1  from gas sales for each of
the last five years, with a realised CAGR of 15%. New contracts, such as this
morning's announcement provide the basis for us to continue this growth into
the future and we look forward to continue working with the Sahara Group on
this and potentially other projects in the future."

 

Kola Adesina, Group Managing Director, Sahara Power Group, said:

 

"At Sahara, we believe that with Savannah we have a partnership that works,
and we are delighted to see that our beliefs are becoming a reality. Through
this Addendum, we aim to secure the reliable supply of gas to FIPL power
plants, thereby improving the health of the Nigerian Electricity Supply
Industry and as always, bringing energy to life for the everyday person whose
interest we serve intentionally."

 

 

For further information, please refer to the Company's
website www.savannah-energy.com (http://www.savannah-energy.com/)  or
contact:

 

 

 Savannah Energy                                                                       +44 (0) 20 3817 9844
 Andrew Knott, CEO
 Nick Beattie, Interim CFO
 Sally Marshak, Head of IR & Communications

 Strand Hanson (Nominated Adviser)                                                     +44 (0) 20 7409 3494
 James Spinney
 Ritchie Balmer
 Rob Patrick

 finnCap Ltd (Joint                                                                    +44 (0) 20 7220 0500
 Broker)

 Christopher Raggett

 Tim Redfern

 Panmure Gordon (UK) Ltd (Joint                                                        +44 (0) 20 7886 2500
 Broker)

 John Prior

 Hugo Rich

 James Sinclair-Ford

 Camarco                                                                               +44 (0) 20 3757 4983
 Billy Clegg

Owen Roberts

Violet Wilson

The information contained within this announcement is considered to be inside
information prior to its release, as defined in Article 7 of the Market Abuse
Regulation (EU) No. 596/2014, which forms part of United Kingdom domestic law
by virtue of the European Union (Withdrawal) Act 2018 (as amended), and is
disclosed in accordance with the Company's obligations under Article 17 of
those Regulations.

 

 

About Savannah Energy

Savannah Energy PLC is an AIM quoted British independent energy company
focused around the delivery of Projects that Matter in Africa and is active in
Cameroon, Chad, Niger and Nigeria.

South East Nigeria Infrastructure Map

http://www.rns-pdf.londonstockexchange.com/rns/9791I_1-2022-4-21.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9791I_1-2022-4-21.pdf)

Further information on Savannah Energy PLC can be found on the Company's
website: www.savannah-energy.com (http://www.savannah-energy.com/) .

 

About the Sahara Group and First Independent Power Limited

Sahara Group is a leading international energy and infrastructure conglomerate
with operations in over 42 countries across Africa, Middle East, Europe and
Asia. The Group's affiliate, Sahara Power Group ("SPG"), is the largest
privately owned vertically integrated power company in Sub-Saharan Africa,
with plans to expand its generation capacity to exceed 5,000MW by 2023. The
Sahara Group's portfolio includes Egbin Power Plc (the largest privately owned
thermal power plant in Sub Saharan Africa excluding South Africa) and the
Afam, Eleme, Omoku and Trans Amadi power plants. The Sahara Group successfully
acquired majority shareholding stakes in two of the Power Holding Company of
Nigeria ("PHCN") assets under the privatisation initiative of the Nigerian
Government, namely Egbin Power Plc and Ikeja Electric Plc (one of the largest
power distribution companies in Sub-Saharan Africa). In addition, the Sahara
Group through its affiliate, NG Power HPS Ltd, acquired a 70% stake in First
Independent Power Limited ("FIPL"). FIPL owns and operates four power plants
privatised by Rivers State in 2014, including the Afam, Eleme and Trans Amadi
gas-fired power stations.

 

 

 1  Total Revenues are defined as the total amount of invoiced sales during
the period. This number is seen by management as more accurately reflecting
the underlying cash generation capacity of the business as opposed to Revenue
recognised in the Consolidated Statement of Comprehensive Income. A detailed
explanation of the impact of IFRS 15 revenue recognition rules on our
Consolidated Statement of Comprehensive Income is provided in the Financial
Review section on page 56 of our 2020 Annual Report.

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