Chevron reiterates commitment to Nigeria’s gas development

CHEVRON Nigeria Limited (CNL), the operator of the joint venture between the Nigerian National Petroleum Corporation (NNPC) and CNL, has reiterated its commitment to Nigeria’s gas development.

Chairman/Managing Director of CNL, Mr Jeff Ewing, explained that CNL has contributed immensely to the Nigerian government’s gas master plan through the various gas projects it has embarked on and that the company is the highest contributor of high quality gas to the domestic market in Nigeria. Also, according to the Department of Petroleum Resources (DPR), CNL supplies about 40 per cent of Nigeria’s domestic gas consumption and the company is one of the highest contributors of high quality domestic gas in Nigeria.

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Jeff noted that through investments in gathering and processing of associated gas, routine flaring has been reduced by over 90 per cent in the last 10 years in CNL’s operations.

According to him “amidst the growing global trend in gas production and utilisation, the expectation for the gas sector in Nigeria is high and provides opportunities for investment in the sector.

“The opportunities include transitioning from an oil based economy to a more integrated oil and gas economy and end routine gas flaring, deliberate exploration for non-associated gas to support the Nigeria Gas Master Plan, with a focus on high liquid yield non-associated gas resources to optimise the gas development project economics. Other opportunities include: Removing constraints in the gas to power value chain to increase investor confidence, and Supporting and enabling competitive (Willing Buyer-Willing Seller) gas pricing model across the chain to enable stakeholders cover their costs and be guaranteed a return on investment.”

CNL’s Chairman/Managing Director explained that the company’s gas story began with the implementation of different phases of the Escravos Gas Project (EGP), with four phases of development over the years. He stated that the EGP gas gathering and processing facilities placed CNL as one of the pioneers in creating a practical and economic solution for gas flaring in the Nigerian oil and gas industry.  Also CNL’s Sonam Field development facility is designed to process natural gas through the EGP and is expected to deliver a total of 300 million cubic feet of natural gas per day to the domestic gas market and produce over 30,000 barrels of combined Liquefied Petroleum Gas (LPG) and condensate per day.

The strategy, said the Chairman/Managing Director, includes: ending routine gas flaring; boosting domestic supply diversifying and commercializing gas resources through Gas-Based Industries such as its Escravos Gas-to-Liquid (EGTL) Plant.  CNL works very closely with our JV partner (NNPC), pertinent government agencies and industry stakeholders to advance domestic gas supply. Very notable are the Gas Sale and Aggregation Agreement (GSAA) with Egbin Power Plc and, more recently with Dangote Fertilizer Limited, Ibeju-Lekki.

Chevron is also supportive of Nigeria’s leadership in West Africa through our partnership with the NNPC in developing and operating the West African Gas Pipeline (WAGP), a 678 km pipeline that supplies gas to Benin, Togo, and Ghana as part of a broader initiative to develop the energy sector in the region.

CNL is optimistic about the future of oil and gas business in Nigeria as the opportunities are enormous and the Chairman/Managing Director emphasised “Chevron has a long commitment to Nigeria. The company has been making significant investments in the country for over 50 years and it expects to do so for many more years to come. With the right policies, the enormous potential of Nigeria’s oil and gas sector can yield even greater benefits.”