VOG Signs New Contract in Cameroon
UK-listed Cameroon gas producer Victoria Oil & Gas (VOG) said December 24 it has signed binding term sheet to resume gas supply to Cameroon's main power producer Eneo Cameroon to resume gas supply to the Logbaba 30MW Power Station.
VOG said that gas supply recommenced December 22 2018 as did generation by the Eneo 30MW plant.
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The contract term lasts three years. The price and volume are understood to be less than under the previous contract.
VOG said the new peak quantity delivery is 6.1mn ft3/d, with the minimum base load 80% (4.9mn ft3/d) of peak quantity on a "take or pay" basis throughout the year. The gas price range in the new contract is from $6.75 to $6.95 per mn Btu.
It had supplied Eneo through most of 2017 at an interim gas price of $7.50/mn Btu until the end of 2017 under an arrangement reached June 2017, after its original contract with Eneo at $9/mnBtu expired April 22 2017.
VOG had been without the Eneo contract for a whole year. Eneo was, and is, VOG's largest offtaker. Drought in Cameroon meant it was a struggle for Eneo to do without the gas. Gas export and power generation resumed December 22 2018 and build-up to the full 30MW supply is "progressing well", said VOG.