Chevron Nigeria Limited (CNL) and Nigerian National Petroleum Corporation (NNPC) have agreed to supply 70 million standard cubic feet per day (mmscf/d) of natural gas to Dangote Fertilizer Limited for start up and operation of the new plant.
The General Manager, Policy Government and Public Affairs, Chevron Nigeria Limited, Esimaje Brikinn disclosed this in a statement in Abuja on Thursday.
He said that both Chevron and NNPC had signed a Gas Sale and Aggregation Agreement (GSAA) with the Dangote Fertilizer Limited (DFL) and Gas Aggregation Company of Nigeria Limited (GACN) as the Aggregator.
He added that under the agreement, NNPC and CNL would be obligated to supply natural gas to the fertilizer plant.
Brikinn noted that the Dangote Fertilizer Plant at Ibeju Lekki, Lagos, was 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 Joint Venture’s JV, 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.
“The NNPC/CNL JV is committed to supporting the Federal Government of Nigeria’s policy to boost local industries,” he said.
He further explained that the agreement was executed on behalf of the three companies by Jeffrey Ewing, Chairman/Managing Director of CNL; Morgan Okwoche, Managing Director/Chief Executive Officer of GACN; and Devakumar Edwin, Group Executive Director, Strategy, Capital Projects & Portfolio Development of DFL.(NAN)