Victoria Oil & Gas PLC (LON:VOG) said its wholly-owned subsidiary Gaz du Cameroun SA (GDC) has entered into an exclusive partnership agreement with Europe's largest compressed natural gas (CNG) supplier and distributor, Naturelgaz Sanayi ve Ticaret AS.
The AIM-listed gas and condensate producer and distributor said the purpose of the long-term partnership will be to design, build and operate CNG infrastructure and solutions for customers who need mobile energy, and to market CNG products, including bulk CNG and gas-to-power to industry and businesses.
The firm said the initial focus will be GDC's home market of Cameroon with the intention of rolling this out into other African countries.
It added that phase 1 of the partnership will be a 2 mln standard cubic feet per day (mmscf/d) CNG plant and customer distribution project, which is currently in the design stage.
Naturelgaz is a 93.7%-owned subsidiary of Global Investment Holdings, a Turkey-listed investment company focused on clean-tech and infrastructure investment.
The Turkish company focuses on sales and distribution of bulk CNG to industrial and commercial customers - such as factories, power generators, hotels, asphalt plants - in addition to households not connected to natural gas pipelines.
Kevin Foo, Victoria Oil and Gas chairman said, "The agreement to partner with Naturelgaz, starting in Cameroon, brings together GDC's upstream gas capabilities and experience of the Douala energy market with Naturelgaz' proven track record of delivering CNG solutions. We are excited to be adding CNG to our product mix."
Hasan Tahsin Turan, CEO of Naturelgaz added: “We are enthusiastic about the tremendous growth opportunities this partnership offers and we are keen bring in our know-how, capital and long-term commitment."