Business Hilights
Tracking Nigeria's Headline Business News Online

Chevron reinforces commitment to gas production, seals GSAA with Egbin power

Chevron Nigeria Limited (CNL), operator of the joint venture between the Nigerian National Petroleum Corporation (NNPC) and CNL (NNPC/CNL JV), has signed a Side Letter to the 2011 Gas Sale and Aggregation Agreement (GSAA) with Egbin Power Plc (Egbin) and Gas Aggregation Company of Nigeria (GACN), bringing the GSAA to a formal start.
The signing ceremony held last week at the Transcorp Hilton Hotel in Abuja was executed on behalf of the three companies by Sanjay Narasimhalu, Director Downstream Gas, CNL; Morgan Okwoche and Dallas Peavey Jr., Managing Director of GACN and Managing Director of Egbin, respectively.
Industry observers say the Egbin GSAA has been identified as the first in the country to be successfully made effective between a gas supplier and a power plant. It is a demonstration of more than a few pioneering initiatives that the NNPC/CNL JV has made to enable implementation of the Nigerian Gas Master Plan, of which the GSAAs are a key component.
Chevron in statement made available to Business Hilights in Lagos noted that “It is noteworthy that the NNPC/CNL JV, Egbin and GACN were able to bring the Egbin GSAA to a formal start, in support of the Federal Government’s efforts to significantly improve the power situation in the country”.
“The NNPC/CNL JV’s gas obligation under the Egbin GSAA is 145MMBtu/d. The gas will be delivered to Egbin’s transporter, which is the Nigerian Gas Company, at the delivery point, and the transporter will be responsible for transporting the gas to Egbin’s facilities.
The statement signed by Chevron’s General Manager, Policy Government & Public Affairs, Esimaje Brikinn, averred that “The Egbin GSAA is another effort by the NNPC/CNL JV to reinforce its commitment to supporting the socio-economic development of Nigeria by maintaining its leadership role in domestic gas supply’.