Accugas is one of Nigeria’s largest independent gas processing and distribution companies that is playing a pivotal role in the country’s domestic energy landscape.
Originally a wholly-owned subsidiary of Seven Energy, Accugas was established to harness the vast gas reserves in Esit Eket, Akwa Ibom State to boost Nigeria’s domestic gas market.
In 2019, Savannah Energy, a UK-based energy company, acquired the asset as part of its takeover of Seven Energy. Seven also felt the heat of an economic downturn that hit many oil companies in Nigeria in 2017 and was in dire need of investors to keep operations.
African Infrastructure Investment Managers (AIIM) would later acquire a 20% equity stake in Accugas in 2019, while Savannah retained 80% ownership.
Operational footprint and strategic assets
Accugas operates the onshore Uquo field (OML 13), a non-associated gas asset with gross 2P reserves of 411.8 billion cubic feet (Bcf) as of the end of 2024.
The company manages a comprehensive midstream gas business encompassing:
- Gas processing
- Pipeline transportation
- Sales and delivery to key power generation and industrial customers
At the heart of its operations is a 200 million standard cubic feet per day (mmcf/d) gas processing facility located at Uquo, and a 260 km pipeline network that connects production zones to end-users across Southeastern Nigeria.
Who does Accugas supply gas to?
Accugas delivers processed gas under long-term take-or-pay contracts totaling 161 mmcf/d to three core customers:
- 560MW Calabar NIPP Power Plant
- Lafarge Africa Cement Factory
- 150MW Ibom Power Plant (state-owned)
The company has also previously supplied gas to major clients such as Notore Chemical Industries, a leading fertilizer producer, and the Sahara-operated Afam Power Plant in Rivers State, along with various industrial users in the region.
Looking to expand its footprint, Accugas is developing a 20 mmcf/d gas distribution pipeline network to serve bankable commercial and industrial customers within and around the Calabar Free Trade Zone.
In March, Nsik Group began building a 10 mmcf/d CNG mother station to also tap from the gas facility operated by Accugas in Uquo.
Market share and control
Accugas supplies around 80% of its gas to power generation companies, accounting for over 20% of Nigeria’s thermal power capacity.
Additionally, its gas supports about 10% of Nigeria’s cement production.
With a transportation capacity of up to 600 mmcf/d, Accugas has the potential to power between 2.5 GW and 3 GW of electricity generation.
Since its acquisition by Savannah Energy, Accugas has significantly expanded its market presence.
Today, it supplies gas that supports 24% of Nigeria’s thermal power generation, up from 10% in 2017. Its revenues have also seen a steady increase since the company was indirectly acquired by Savannah. .
In 2023, Andrew Knott, CEO of Savannah Energy said Accugas has recorded six consecutive years of growth in total revenues at a compound annual growth rate of 21%.
“We are now contracted to supply gas to up to 24% of Nigeria’s thermal power generation capacity as well as key petrochemical and cement factories. We are clearly performing a critical service to the Nigerian economy,” Knott said.