Dangote Fertiliser Ltd., said on Wednesday that it had entered into a long-term agreement with Chevron Nigeria Ltd. (CNL) for the supply of Liquefied Natural Gas (LNG) to its blending plant.
A statement by Mr Tony Chiejina, Dangote’s Head of Corporate Affairs Department in Lagos on Wednesday, said that the fertiliser blending plant was poised to begin operations soon.
Chiejina said that the contract, under the Gas Sale and Aggregation Agreement (GSAA) was part of International Oil Company’s (IOC’s) gas obligation to the domestic market through Gas Aggregation Company Ltd. (GACN).
According to the him, Dangote Fertiliser Ltd., will be commissioned before the end of the year.
He added that the company would produce 3.0 million tonnes per annum (mmtpa) of Urea when operational.
The fertiliser plant, which consists of twin trains, with each train having an installed capacity of 1.5 million tonnes per annum of Urea and Ammonia, sits on an area of 500 hectares.
Speaking at the agreement-signing ceremony, Mr Devakumar Edwin, the Group Executive Director, Strategy, Capital Projects & Portfolio Development of Dangote Industries Ltd. (DIL), praised the Managing Director of GACN for his role in the business relationship.
Edwin said that the company was looking forward to establishing a long-term relationship with Chevron Nigeria Ltd., including working closely with it in the upstream and other areas of operation in the oil and gas sector.
Responding, the Managing Director, CNL, Mr Jeffrey Ewing, commended GACN and DPR for their roles in the signing of the gas supply agreement.
He said: “We are looking forward to working with Dangote Fertiliser and maintaining a good relationship with the company.
“This agreement is very important for the country and Chevron is committed to Nigeria’s economic development.”
Also, the Managing Director of GACN, Mr Morgan Okwoche, expressed delight to be part of the gas supply agreement.
“This is the beginning of a fruitful relationship between Dangote Fertiliser Limited, Chevron Nigeria Limited and other parties.
“I am excited that this is happening during my term in office. You cannot imagine my satisfaction in having this contract signed at this time,” he said.
Mr Sanya Bajomo, the Head, Gas Monitoring & Regulation Division, DPR, said that he was glad that GACN, Chevron, and Dangote had signed the gas supply agreement.
Bajome said: “I want to say that this gas supply agreement is an issue of national interest and what happened today is going to be transmitted to the presidency.
“I believe everybody is going to benefit from this agreement when the fertiliser plant starts operation.”
