Lagos — The Nigerian National Petroleum Corporation, NNPC, and Chevron Nigeria Limited, CNL, have in a Joint Venture, JV, signed a 70 million standard cubic feet per day (Scf/d) Gas Sale and Aggregation Agreement, GSAA with Dangote Fertiliser Limited, DFL.
The multi-billion naira deal was on behalf of the trio, by Chairman/Managing Director of CNL, Jeffrey Ewing; Managing Director/CEO of GACN, Morgan Okwoche, and Group Executive Director, Strategy, Capital Projects & Portfolio Development of DFL, Devakumar Edwin on Wednesday.
The Gas Aggregation Company of Nigeria Limited, GACN will serve as the aggregator of the GSAA contract which will be subsequently executed by the NNPC.
While the contract runs, NNPC and CNL will supply 70m Scf/d of natural gas to Dangote Fertiliser Limited to enable the startup and operation of the newly built fertiliser plant.
The Dangote Fertiliser Plant at Ibeju Lekki, Lagos, was designed to support the Federal Government’s drive to develop the agricultural sector.
Natural gas is the feedstock of the Dangote Fertiliser Plant.
General Manager, Policy Government & Public Affairs, CNL, Esimaje Brikinn, said the gas supply agreement would guarantee the supply of the major raw material needed to run the plant.