The Nigerian National Petroleum Corporation (NNPC) and the Chevron Nigeria Limited (CNL) have signed a deal for the execution of the multi-billion dollars Escravos Gas-to-Liquid (EGTL) project which would boost the domestic market with 400MMScf per day gas supply.
This would be equivalent to 26 percent of total domestic gas supply in the country.
A statement by NNPC Acting Group General Manager, Group Public Affairs Division, Mr. Samson Makoji said the agreement was reached by both parties in Abuja on Tuesday.
According to the statement, the Group Managing Director of the corporation, Mele Kyari, described the EGTL plant as “a cornerstone of the energy ecosystem of Nigeria”.
Kyari disclosed that it had the potential to yield $2 billion into the coffers of the Federal Government.
He acknowledged the roles played by President Muhammadu Buhari and the Chairman, Senate Committee on Gas, Sen. Bassey Akpan, which he noted had culminated into the execution of the agreements, assuring that the Federal Government was committed to the project.
In his remarks, the Chief Executive Officer of CNL, who was represented by the Director, NNPC/Chevron Nigeria Limited Joint Venture, Mr. Monday Ovuede, said the project would open up opportunities for gas commercialization and monetization in the Oil and Gas Industry.
Ovuede stressed that one of the values would include provision of clean and environmentally friendly energy.
He assured of his organization’s commitment to foster mutually beneficial relationship with the corporation in the energy sector.
The highpoint of the event was the signing of five sets of agreements which include: the Settlement Agreement; Amendment to the Venture Agreement; Sales and Purchase Agreement; Depository Agreement for Special Purpose Vehicle; and Agreement for Power of Attorney to be given to CNL as the representative of the Sellers.