StockMarketWire.com - African-focused British independent energy company Savannah Energy said its Accugas subsidiary has entered into a new gas sales agreement with Mulak Energy.

The gas sales agreement is initially for a seven-year term. The supply of gas produced by Savannah's majority-owned Uquo field will be for an initial two-year period on an interruptible basis and the subsequent five years on a firm contract basis.

Mulak is a member of the Mansour Group, the Egyptian multinational conglomerate with operations in more than 100 countries and annual revenues exceeding $7.5 billion.

Savannah Energy said Accugas continues to make good progress in relation to agreeing further potential new gas sales agreements and further updates of which will be provided in due course.

Andrew Knott, chief executive of Savannah Energy, said: ‘Our first gas-to-compressed natural gas agreement is hugely exciting as it represents Savannah's entry into the compressed natural gas market, which we see as offering strong growth potential for our business over the course of the next decade.

‘The compressed natural gas market significantly extends the reach of our existing 260km pipeline network into light industrial and even domestic power generation without the need for further investment in pipelines.’




Story provided by StockMarketWire.com