Nigeria: NDPHC, Chevron Sign Pact On Olorunsogo Genco's Gas Supply

16 October 2019

Abuja — The Niger Delta Power Holding Company Limited (NDPHC) has signed a Gas Sale and Aggregation Agreement (GSAA) with Chevron Nigeria Limited (CNL) to supply gas to its Olorunsogo power generation company (Genco).

A statement sent to THISDAY in Abuja, by the General Manager, Policy Government and Public Affairs of CNL, Esimaje Brikinn, explained that the pact also included the Gas Aggregation Company Nigeria Limited (GACN), and with CNL in its capacity as sellers' representative for the Nigerian National Petroleum Corporation (NNPC) and itself.

"CNL will supply on an interruptible (reasonable endeavours) basis, a daily contract quantity of 0-63,000MMbtu/d of natural gas to Olorunsogo Generation Company Limited," the statement explained.

The agreement was executed on behalf of the four companies by the Director of Downstream Gas at CNL, Sanjay Narasimhalu; the Managing Director of NDPHC, Mr. Chiedu Ugbo; an Executive Director at NDPHC, Mr. Ifeoluwa Oyedele; and Managing Director of GACN, Mr. Morgan Okwoche.

It stated that the Olorunsogo Genco at Olorunsogo part of Ogun state, is owned by the NDPHC and designed to supply 750MW of electricity into the national grid.

It noted that this was to support the federal government's drive to develop the power sector and in-turn grow the Nigerian economy, adding that natural gas is the feedstock of the plant.

"The GSAA for the supply of the major input needed to run the power generation plant is another demonstration of the NNPC/CNL JV's commitment to the domestic gas market," the statement added.

It quoted Narasimhalu to have said that the NNPC/CNL Joint Venture (JV) is currently the largest and most on-specific supplier of gas to the domestic market.

He also stated that the JV has continued to collaborate extensively with other stakeholders in finding creative solutions to issues relating to the domestic gas market.

Narasimhalu said: "The NNPC/CNL JV is committed to supporting the federal government of Nigeria's policy to boost local industries."

Similarly, Ugbo was quoted to have stated the commitment of NDPHC to continuing in its drive to find lasting solutions to the power generation challenges in the country.

According to the statement, Okwoche, in the same vein affirmed that GACN will continue to collaborate with relevant stakeholders in proffering working solutions to issues around the domestic gas market value chain with the ultimate goal of ensuring growth in the sector.

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