Victoria Oil & Gas plc (LON:VOG) has told investors that it remains confident that a solution can be found to end the suspension of gas sale.
The latter point is significant for the efforts of VOG subsidiary Gaz du Cameroon which is working to sign up customers for gas-fuelled retail power solutions. It said that several existing and new customers have expressed interest, and, it expects to sign up several such customers by the year’s end.s to power generator ENEO, and, said it remains actively engaged in the process.
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In the meantime, VOG highlighted that shortfalls in power supply continue as hydroelectric schemes are currently not meeting demand.
“GDC is expediting its support to manufacturers and producers in Douala who are facing regular power disruptions by providing bespoke gas-fired power generation for individual customers or groups of customers,” VOG said in its second-quarter update.
“As most of these proposed power customers are already connected to the gas pipeline network, adding a gas to power generation solution would increase gas consumption with minimal capital costs for GDC.”
Additionally, the company noted its recent deal with Naturelgaz regarding compressed natural gas solutions, as potential alternative products to diesel and heavy fuel oils. It highlighted that active discussions are underway with a number of potential customers.
In terms of ongoing performance, the company’s second-quarter update confirmed lower sales volumes, as expected, due to the suspension of ENEO supply.
Second quarter volumes totalled 320mln cubic feet per day, compared to 726mln seen in the fourth quarter of 2017, before the impact of the suspension – the corresponding figures attributable to GDC are 183mln cubic feet versus 413mln.