Business News
FG projects $2 billion annual revenue from Escravos Gas project
The Nigerian government has been projected to earn $2 billion annually from the EGTL project, the NNPC disclosed.
The Nigerian government has been projected to earn $2 billion annually from the Escravos Gas to Liquid (EGTL) project, the Nigerian National Petroleum Corporation (NNPC) disclosed.
According to Mele Kyari, the Group Managing Director, NNPC at the sign-off meeting of the EGTL project, which is in partnership with Chevron Nigeria Limited (CNL), Chevron Nigeria would be able to increase gas supply with 400 million standard cubic feet per day (MMScfp/d), projected to be 26% of Nigeria’s domestic gas supply.
The NNPC boss disclosed that the multi-billion dollar EGTL plant would be a cornerstone of the energy ecosystem of Nigeria, with the potential to yield $2 billion yearly into the coffers of the Federal Government. He appreciated the role of the presidency and Sen. Bassey Akpan Chairman, Senate Committee on Gas, which assisted in the execution of the agreements in relation to the project.
Meanwhile, the Chief Executive Officer of Chevron Nigeria Limited, who was represented by the Director, NNPC/Chevron Nigeria Limited Joint Venture (JV), Mr Monday Ovuede, in his address stated that the project would bring about opportunities for commercialisation and monetization of gas in the oil and gas industry, The Nation reported.
Ovuede emphasized that one of the values the EGTL project would bring includes the provision of clean and environmentally friendly energy while assuring of his organisation’s commitment to foster mutually beneficial relationship with the Nigerian National Petroleum Corporation in the energy sector.
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The event witnessed the signing of five important 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 Chevron Nigeria Limited as the representative of the sellers.
What you need to know about GTL: Gas-to-liquids (GTL) is a technology that enables the production of clean-burning diesel fuel, liquid petroleum gas and naphtha from natural gas. The GTL process enables us to transform natural gas into super clean diesel fuel.
