Chevron Nigeria Limited, operator of the NNPC-Chevron Nigeria Limited Joint Venture (NNPC/CNL JV), has signed a gas sale and aggregation agreement with Olorunsogo Generation Company Limited, Niger Delta Power Holding Company Limited and Gas Aggregation Company Nigeria Limited.
It is the second time the American major would be signing a Gas Sales Agreement with a company that would use the gas in the Nigerian economy.
Last March, Chevron, which operates the NNPC/Chevron Joint Venture, signed a 75MMscf/d Sales Agreement with Dangote Fertiliser. The new agreement with NDPHC, will enable the company to supply on an interruptible basis, a daily contract quantity of up to 63Million standard cubic feet a day (63MMscf/d) of natural gas to Olorunsogo Generation Company Limited.
The Olorunsogo generation plant in Ogun State is an existing NDPHC electricity generation project designed to supply power of about 750MW into the national grid. “Natural gas is the feedstock of the Olorunsogo generation plant. The GSAA for the supply of the major input needed to run the power generation plant is another demonstration of the NNPC/CNL JV’s commitment to the domestic gas market,” explains Esimaje Brikinn, Chevron Nigeria’s General Manager, Policy Government and Public Affairs.
Sanjay Narasimhalu, Director, Chevron Nigeria’s Downstream Gas claims that NNPC/CNL JV was 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”, he says.