Chevron, Dangote Fertiliser Sign Contract For Gas Supply

The Nigerian National Petroleum Corporation and Chevron Nigeria Limited have signed a Gas Sale and Aggregation Agreement with Dangote Fertiliser Limited and the Gas Aggregation Company of Nigeria Limited, which is the aggregator.

Chevron disclosed this in a statement signed by its General Manager, Policy Government and Public Affairs, Esimaje Brikinn.

It said the agreement was executed on behalf of the three companies by the Chairman/Managing Director of CNL, Jeffrey Ewing; the Managing Director/Chief Executive Officer, GACN, Morgan Okwoche; and the Group Executive Director, Strategy, Capital Projects and Portfolio Development at DFL, Devakumar Edwin.

The NNPC and Chevron are obligated to supply 70 million standard cubic feet of gas per day to Dangote Fertiliser to enable the start-up and operation of the newly built fertiliser plant.

According to the statement, 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 improve the Nigerian economy.

It said, “Natural gas is the feedstock of the Dangote fertiliser plant. This GSAA for the supply of the major raw material needed to run the fertiliser plant is another demonstration of the NNPC/CNL Joint Venture’s commitment to the domestic gas market.

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