Dangote Fertilizer Coy Signs Gas Supply Agreement With NNPC/ Chevron JV 

Yemisi Izuora 

The Nigerian National Petroleum Corporation, NNPC, and Chevron Nigeria Limited, CNL, have signed a Gas Sale and Aggregation Agreement, GSAA, with Dangote Fertilizer Limited, DFL, and Gas Aggregation Company of Nigeria Limited, GACN, as the ‘Aggregator’.   

The agreement was executed on behalf of the three companies by Jeffrey Ewing, Chairman/Managing Director of CNL; Morgan Okwoche, Managing Director/CEO of GACN; and Devakumar Edwin, Group Executive Director, Strategy, Capital Projects & Portfolio Development of DFL, respectively. (NNPC executed the GSAA subsequently.)

The NNPC and CNL under the arrangement are obligated to supply 70 million standards cubic feet mmScf/d of natural gas daily to Dangote Fertilizer Limited to enable start up and operation of the newly built fertilizer plant.

 The Dangote Fertilizer Plant at Ibeju Lekki, Lagos, is a flagship mega fertilizer project designed to support the Federal Government’s drive to develop the agricultural sector and in-turn improve the Nigerian economy. Natural gas is the feedstock of the Dangote Fertilizer Plant. This GSAA for the supply of the major raw material needed to run the fertilizer plant is another demonstration of the NNPC/CNL JV’s commitment to the domestic gas market. 

 The NNPC/CNL Joint Venture (JV) is 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.

 The NNPC/CNL JV is committed to supporting the Federal Government of Nigeria’s policy to boost local industries

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