Dangote Fertiliser said it has signed a gas deal with the Nigerian National Petroleum Corporation (NNPC) and Chevron Nigeria Limited.
The aggregation agreement and gas sale will see Chevron and NNPC supply 70mmScf/d of natural gas to Dangote Fertiliser Limited.
According to the agreement, the Gas Aggregation Company of Nigeria Limited (GACN) is expected to serve as the ‘aggregator’. It was signed by the Chairman/MD of Chevron Nigeria Limited, Mr Jeffery Ewing, the MD of Gas Aggregation Company of Nigeria Limited, Mr Morgan Okwoche, and Mr Devakumar Edwin, an Executive Director at Capital Projects and Portfolio Development.
No details were given about the financial entailment of the partnership between the four entities. However, the Nigerian government’s drive to diversify the economy by developing the agricultural sector, will be boosted when the Dangote Fertilizer Plant becomes operational.
The agreement for the natural gas, which is the feedstock of the mega fertilizer project, is said to portray the commitment of NNPC/CNL JV to the domestic gas market. The JV has continued to collaborate extensively with other stakeholders in finding creative solutions to issues relating to the domestic gas market.
The NNPC/CNL JV is also committed to supporting the Federal Government’s policy to boost local industries.
The fertilizer project is part of Dangote’s refinery plant scheduled to begin operation in 2020. The plant will serve as a major source for foreign exchange for Nigeria.