Dangote Fertilizer signs major gas deal with NNPC and Chevron

Dangote Fertiliser Limited has signed gas supply agreements with the Nigerian National Petroleum Corporation and Chevron Nigeria Limited.

The Gas Sale and Aggregation Agreements require both Chevron and the NNPC to supply 70mmScf/d of natural gas to the Dangote Fertilizer Limited.

According to the agreement, the Gas Aggregation Company of Nigeria Limited (GACN) is expected to serve as the ‘aggregator’.

The agreement 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 & Portfolio Development.

No details were given about the financial entailment of the partnership between the four entities.

Note that the NNPC/Chevron Joint Venture (JV) is currently the largest and most on-spec supplier of gas to the domestic market.

The fertiliser plant could boost the agricultural sector – The Federal Government’s drive to diversify the economy by developing the agricultural sector, will be boosted when the Dangote Fertilizer Plant becomes operational.

Chevron and the NNPC committed the domestic gas market – Meanwhile, 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 committed to supporting the Federal Government’s policy to boost local industries.

Dangote fertilizer to benefit from CBN’s FX policy

Recall that the Governor of Central Bank of Nigeria, MrGodwin Emefiele, in December last year made good his threat to add other items to the list of those banned from the official exchange market. The apex bank removed fertilizer from the official foreign exchange market. Now, Dangote Fertiliser could be among the few local fertiliser companies that will benefit.

The fertilizer project is part of Dangote’s refinery plant scheduled to begin operation in 2020, serving as a major source for foreign exchange for Nigeria.

Source: Nairametrics

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Author: see naija

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