Chevron/NNPC JV seals GSAA deal with emerging Dangote fertilizer firm
In furtherance to its commitment to Nigeria’s socio-economic development, leading oil and gas giant, Chevron Nigeria Limited (CNL) in understanding with the Nigerian National Petroleum Corporation (NNPC) have signed a Gas Sale and Aggregation Agreement (GSAA) with Dangote Fertilizer Limited (DFL) and Gas Aggregation Company of Nigeria Limited (GACN) as the ‘Aggregator’.
Business Hilights learnt that the agreement was executed on behalf of the three companies by Jeffrey Ewing, Chairman/Managing Director of CNL; Morgan Okwoche, Managing Director/CEO of GACN; and Devakumar Edwin, Group Executive Director, Strategy, Capital Projects & Portfolio Development of DFL, respectively. (NNPC executed the GSAA subsequently.)
Accordingly, 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.
Recall that the Dangote Fertilizer Plant at Ibeju Lekki, Lagos, is a flagship mega fertilizer 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 Fertilizer 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/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.
Though the financial value of the deal remained sealed, a statement issued by the General Manager, Policy Government & Public Affairs, Chevron Nigeria Limited, Esimaje Brikinn and made available to Business Hilights assured that the NNPC/CNL JV is committed to supporting the Federal Government of Nigeria’s policy to boost local industries.
