Chevron, NNPC Seal Gas Supply Deal For Dangote Fertiliser Plant

Chevron Nigeria Limited (CNL), operator of the CNL and the Nigerian National Petroleum Corporation (NNPC) joint venture, 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 executed on behalf of the three companies by Chairman/Managing Director of CNL, Jeffrey Ewing; Managing Director/CEO of GACN, Morgan Okwoche, and Group Executive Director, Strategy, Capital Projects & Portfolio Development of Dangote Fertilizer Limited, Devakumar Edwin respectively. The NNPC executed the GSAA subsequently.

Under the agreement, NNPC and CNL are obligated to supply 70 million standard cubic feet per day (Scf/d) of natural gas to Dangote Fertiliser Limited to enable the startup and operation of the newly built fertiliser plant.

The Dangote Fertiliser Plant at Ibeju Lekki, Lagos, is a flagship mega fertiliser project designed to support the Federal Government’s drive to develop the agricultural sector and in-turn improve the Nigerian economy.

Natural gas is the feedstock of the Dangote Fertiliser Plant.

Chevron, through its General Manager, Policy Government & Public Affairs, Esimaje Brikinn, said the gas supply agreement would guarantee the supply of the major raw material needed to run the plant.

He said this was another demonstration of the NNPC/CNL JV’s commitment to the domestic gas market.

The NNPC/CNL Joint Venture is currently the largest and most on-spec supplier of gas to the domestic market.

The JV continues to collaborate extensively with other stakeholders in finding creative solutions to issues relating to the domestic gas market.

The NNPC/CNL JV is committed to supporting the Federal Government of Nigeria’s policy to boost local industries.