As part of its commitment to socio-economic development of Nigeria, Chevron Nigeria Limited (CNL), one of the successful International Oil Companies (IOCs) operating in Nigeria, has signed gas sale and aggregation agreement with Dangote Fertilizer Limited (DFL).
The Nigerian National Petroleum Corporation (NNPC) and Chevron signed Gas Sale and Aggregation Agreement (GSAA) with DFL and Gas Aggregation Company of Nigeria Limited (GACN) as the Aggregator.
The agreement was executed on behalf of the three companies by Jeffrey Ewing, Chairman and Managing Director of CNL; Morgan Okwoche, Managing Director and CEO of GACN; and Devakumar Edwin, Group Executive Director, Strategy, Capital Projects & Portfolio Development of DFL. NNPC executed the GSAA.
NNPC and CNL are obligated to supply 70mmScf/d of natural gas to Dangote Fertilizer Limited to enable start up and operation of the newly built fertilizer plant.
The DFL Plant at Ibeju Lekki in Lagos is a flagship mega fertilizer project designed to support government’s drive to develop agricultural sector and in-turn improve the Nigerian economy. Natural gas is the feedstock of the DFL Plant. This GSAA for the supply of the major raw material needed to run the fertilizer plant is another demonstration of the NNPC/CNL JV’s commitment to the domestic gas market.
The NNPC and CNL Joint Venture (JV) 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 joint agreement and policy is to support government’s efforts to boost local industries.
However, Chevron at different fora has showcased its social intervention policy to assist the country in areas of needs by ensuring that its presence and existence is felt in the country while enhancing the oil industry as well.