CHEVRON, NNPC SECURE GAS SUPPLY CONTRACT FOR DANGOTE FERTILISER PLANT
Originally published on Mar 15, 2019
Chevron Nigeria Limited (CNL), dealer of the CNL and the Nigerian National Petroleum Corporation (NNPC) joint venture, has on Wednesday, signed a Gas Sale and Aggregation Agreement (GSAA) with Dangote Fertiliser Limited (DFL) and Gas Aggregation Company of Nigeria Limited (GACN) as the aggregator.
The agreement was implemented on behalf of the three companies by the Managing Director of CNL, Jeffrey Ewing, Managing Director of GACN, Morgan Okwoche, and Group Executive Director, Strategy, Capital Projects & Portfolio Development of DFL, Devakumar Edwin. The NNPC also executed the GSAA in due course.
In order to enable the commencement of operation of the newly built fertiliser plant, the agreement states that NNPC and CNL are obliged to supply 70 million standard cubic feet per day (Scf/d) of natural gas to Dangote Fertiliser Limited.
The Dangote Fertiliser Plant at Ibeju Lekki area of Lagos state, is a flagship mega fertiliser project designed to reinforce the Federal Government’s drive to expand the agricultural sector and also enhance the country’s economy.
The CNL, through its General Manager, Policy Government & Public Affairs, Esimaje Brikinn, noted that since natural gas is the feedstock of the Dangote Fertiliser Plant, gas supply agreement would ensure the supply of the major raw material needed to run the plant.
He said that this was another proof of the NNPC/CNL JV’s dedication and loyalty to the domestic gas market, and as the largest supplier of gas, it is committed to supporting the Federal Government’s policy.