Chevron concludes gas sale deal with power and gas firms

Chevron Nigeria Limited has signed gas supply agreements with Olorunsogo Generation Company Limited, Niger Delta Power Holding Company Limited and Gas Aggregation Company Nigeria Limited.

The Gas Sale and Aggregation Agreement would require Chevron to supply a daily contract quantity of 0-63,000MMbtu/d of natural gas to Olorunsogo Generation Company Limited.

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Nairametrics understands that the Olorunsogo generation plant at Olorunsogo in Ogun State is an existing NDPHC electricity generation project designed to supply power of about 750MW into the national grid, support the Federal Government’s drive to develop the power sector and, in turn, grow the Nigerian economy.

The General Manager, Policy, Government and Public Affairs, Chevron Nigeria Limited, Esimaje Brikinn, who disclosed the agreement in a statement said that it was executed on behalf of the four companies by Sanjay Narasimhalu, Director, Downstream Gas, Chevron Nigeria Limited, Chiedu Ugbo, MD, Niger Delta Power Holding Company Limited, Ifeoluwa Oyedele, Executive Director, NDPHC, for Olorunsogo Generation Company Ltd and Engr Morgan Okwoche, the MD of Gas Aggregation Company Nigeria Limited.

Note that the NNPC/Chevron Joint Venture (JV) is currently the largest and most on-spec supplier of gas to the domestic market as quoted by Sanjay Narasimhalu, CNL’s Director, Downstream Gas.

Chevron/NNPC’s commitment to the domestic gas market: According to Narasimhalu, the natural gas is 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.

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In his remarks, the MD, NDPHC, Chiedu Ugbo, also emphasized the commitment of the NDPHC to continue in its drive to find lasting solutions to the power generation challenges in the country.