Dangote Fertilizer Limited and Chevron Nigeria Limited, CNL, have signed a long-term agreement for the delivery of Natural Gas from Chevron’s supply portfolio to the fertilizer plant.
The plant is billed to be commissioned before the end of the year.
The contract, under the Gas Sale and Aggregation Agreement, GSAA, is part of International Oil Company, IOC’s gas obligation to the domestic market through the Gas Aggregation Company Limited, GACN,.
A statement issued by APO Group, on behalf of Dangote Fertilizer , disclosed that the signing ceremony, which held at the Department of Petroleum Resources, DPR, office in Lagos, was executed on behalf of the parties by Group Executive Director, Strategy, Capital Projects & Portfolio Development, Dangote Industries Limited, Devakumar Edwin; Chairman/Managing Director, Chevron Nigeria Limited, CNL, Jeffrey Ewing; Head, Gas Monitoring & Regulation Division, Department of Petroleum Resources, DPR, Sanya Bajomo; and Managing Director/CEO, Gas Aggregation Company Nigeria Limited, GACN, Morgan Okwoche.
Dangote Fertilizer Limited, which sits on an area of 500 hectares, is expected to produce 3.0 million metric tonnes per annum (mmtpa) of Urea.
The fertilizer plant according to the statement consists of twin train, with each single train having a capacity of 1.5 million tonnes per annum of Urea and Ammonia, which makes each of them the largest train available in the world.
The statement quoted the Group Executive Director, Strategy, Capital Projects & Portfolio Development, DIL, Devakumar Edwin, as commending the Managing Director of GACN for his role in the new business relationship between Dangote Fertilizer Limited and Chevron Nigeria Limited adding that the company was looking forward to having a long-term relationship with Chevron Nigeria Limited as well as synergies in other upstream and wider areas of operations in the oil and gas sector.
On his part, Chairman/Managing Director, CNL, Jeffrey Ewing commended GACN, DPR for helping with the signing of the gas supply agreement saying: “We are looking forward to working with Dangote Fertilizer and maintaining a good relationship with the company. This agreement is very important for the country and Chevron is committed to Nigeria’s economic development.”
The Managing Director/CEO, GACN, Morgan Okwoche, who was quoted as expressing delight at being part of the domestic gas agreement, noted: “This is the beginning of fruitful relationship between Dangote Fertilizer Limited, Chevron Nigeria Limited and other parties. I am excited that this is happening during my term in office. You cannot imagine my satisfaction in having this contract signed at this time.”
Head, Gas Monitoring & Regulation Division, DPR, Sanya Bajomo, in his own remark said: “I am glad that GACN, Chevron and Dangote have signed this gas supply agreement. I want to say that this gas supply agreement is an issue of national interest and what happened today is going to be transmitted to the presidency. I believe everybody is going to benefit from this agreement when the fertilizer plant starts operation.”