The Federal Government of Nigeria has recognized and praised Savannah Energy for its significant investments in the nation’s energy sector, particularly its endeavors to enhance domestic gas supply. During a recent visit to the Uquo Gas Central Processing Facility in Akwa Ibom State, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized the importance of Savannah’s contributions to the energy landscape in Nigeria. The minister’s remarks underscore the critical role gas plays in the Nigerian economy, highlighting that Savannah’s efforts have helped it supply approximately 20 percent of the country’s thermal power generation capacity.
Minister Ekpo highlighted President Bola Tinubu’s focused approach to developing Nigeria’s gas sector, framing it as essential for national economic progress. He stated that the government envisions a “Decade of Gas” initiative, which aims to establish gas as a cornerstone of the Nigerian economy, targeting substantial growth and utilization by 2030. This initiative is pivotal as it reflects the government’s strategy to leverage gas to facilitate economic development, extending beyond mere energy supply to a comprehensive drive for national productivity.
Pade Durotoye, the Managing Director of Savannah Energy in Nigeria, accompanied Ekpo on the visit and detailed the company’s substantial financial commitments toward improving gas processing and transportation infrastructure through its subsidiary, Accugas Limited. Since commencing operations in 2014, Savannah has invested over $1.6 billion in this sector. Moreover, a new initiative is underway where Accugas will invest an additional $45 million in a compression system designed to enhance gas supply reliability. This new system, composed of two parallel trains with significant capacity, aims to boost gas export pressure and is expected to be operational later this year.
Durotoye also reiterated Savannah Energy’s commitment to the Federal Government’s focus on natural gas as a transitional fuel on the road to achieving net-zero emissions. He mentioned how this transition is particularly vital for the power generation sector, as it offers a more environmentally friendly alternative while addressing the energy needs of a growing population. Savannah’s investments include constructing a gas processing facility with a substantial capacity and a comprehensive pipeline network that aims to serve the domestic market effectively.
Importantly, Durotoye pointed out that all the gas produced by Accugas is consumed domestically, with a significant portion dedicated to thermal power generation. He highlighted that approximately 80 percent of the gas is supplied to power generation companies, while the remaining 20 percent supports various large industrial operations, including cement production. Accugas’s contribution to the cement sector is noteworthy, enabling about 10 percent of Nigeria’s total cement output, thus further underscoring the interconnectedness of energy supply and industrial growth.
In conclusion, Savannah Energy’s impact on Nigeria’s energy sector is profound, with recognition from the government signaling encouragement for continued investment and support for the local economy. As the country seeks to transition to a gas-driven economy, partnerships between private companies like Savannah and the government could prove crucial. The ongoing commitment to infrastructure development, coupled with a strategic national agenda, positions Nigeria to harness its vast energy resources effectively, promoting both economic growth and energy sustainability in the years to come.
