Eneo to turn thermal power plants to gas

Energy of Cameroon (Eneo), the concessionaire of the public service of electricity in Cameroon, will soon turn, its thermal power plants in Bassa and Logbaba, localities in Douala (economic capital) to gas to enable it to reduce the operating costs of these units.

The information was not given by the company itself, but was deduced by Ecofin Agency, following an announcement made on 19th January 2015 by Victoria Oil & Gas, mining junior British majority shareholder of gas in Cameroon (GDC).

In this announcement, VOG explains to investors in the London Stock Exchange where it is listed, that it has completed the connection of sites concerned ahead of time.

"Pipelines are in testing now and it is intended that this ends by the end of the week. Eneo had hoped that these plants are connected and can produce 50 megawatts of electricity, before the end of the first quarter of 2015. GDC now anticipates that these objectives will be achieved before this period", noted the release.

For gases of Cameroon, the case presents itself as a great opportunity to increase revenues. The contract with Eneo, which is mostly controlled by the British investment Actis funds, runs on two years renewable, and focuses on the delivery of 9 foot million standard cubic per day, during the dry season, which starts from January to June, and 3 million feet per day for the period standard cubic less dry which runs from July to December.

The operation is still more advantageous to Eneo. The company should reduce the cost of production of electricity from these two plants, insofar as the Bill paid to gas from Cameroon, for every kilowatt equivalence consumed gas, will be 15.35 Cfa francs.

With rehabilitation work advertised on the Songloulou dam and the dry season which is already rife in Cameroon, Victoria Oil and Gas announcement will not be well received in the London Stock Exchange. Households and businesses in Douala should know a lighter low-flow period.