Chevron Inks Nigerian Gas Sales Contract
US major Chevron has sold 70mn ft³/day of its portfolio gas to Nigerian Dangote Fertilizer (DF) on a long-term contract, through the Gas Aggregation Company of Nigeria. The plant is poised to start operations in April, the buyer said March 14.
Alongside the fertilizer plant, Dangote is building a refinery, which will start in the first quarter of 2020. Last year, DF said018, the company revealed that the Central Bank of Nigeria had supported the project with naira 50bn ($140mn), and the refinery with another naira 70bn. The projects are funded by 60% DF equity and 40% by both local and foreign banks.
DF will produce 3mn metric tons/year of urea and ammonia from its two equally-sized trains, the largest in the world.
DF said the company was "looking forward to having a long-term relationship" with Chevron, as well as synergies in other upstream and wider areas of operations in the oil and gas sector.
Chevron reciprocated and said the agreement "is very important for the country and Chevron is committed to Nigeria's economic development."