Victoria Oil & Gas Plc announces that Gaz du Cameroun S.A. ("GDC"), its wholly owned subsidiary, has successfully completed pipeline pressure testing up to the boundaries of the Bassa and Logbaba power stations located in the port-city of Douala, Cameroon. GDC will now commence installing pressure reduction and metering units at both stations.
The next significant phase of the project involves the delivery and installation of gas fired power generation sets (“Gensets”) to the power stations. The Gensets are being shipped to Cameroon by Altaaqa Alternative Solutions Projects DWC-LLC ("Altaaqa"). Upon arrival in Douala, ENEO Cameroon S.A. (“ENEO”), Cameroon's power utility company, will take responsibility for expediting the Gensets through the port to both power plants. Once the Gensets are on site, Altaaqa will install and commission the Gensets at Bassa and Logbaba.
ENEO requires both power stations to be on line and delivering 50MW by the end of Q1 2015, and GDC is on target to complete all of its deliverables before that deadline. Following commissioning of the Gensets, GDC’s obligation will be to supply gas to the 20MW and 30MW power stations in Douala. All operations and maintenance responsibilities for the Gensets remain with Altaaqa and ENEO.
GDC signed binding term sheets with ENEO on 24 December 2014 to supply gas with guaranteed minimum take or pay levels of 9mmscf/d in the January-June dry season and 3mmscf/d in the July-December wet season. The agreement with ENEO is a major gas supply contract for GDC in terms of scale and profitability at a fixed $9/mmbtu over the two year contract term. The contract can be extended by mutual agreement.
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