NNPC/CHEVRON JV signs agreement to boost power generation

Chevron Nigeria Ltd (CNL) has signed a Gas Sale and Aggregation Agreement (GSAA) with Olorunsogo Generation Company Ltd, Niger Delta Power Holding Company Ltd (NDPHC) and Gas Aggregation Company Nigeria Ltd (GACN) to boost power generation in the country.

The agreement was a midwife in Chevron’s capacity as Sellers’ Representative for the Nigerian National Petroleum Corporation and itself.

Chevron’s General Manager, Policy Government & Public Affairs, Esimaje Brikinn, disclosed the development in a statement electronically made available to journalists on Sunday.

He said the agreement was executed on behalf of the four companies by Sanjay Narasimhalu, Director, Downstream Gas, CNL; Chiedu Ugbo, MD, NDPHC; Ifeoluwa Oyedele, Executive Director, NDPHC, for Olorunsogo Generation Company Ltd; and Engr Morgan Okwoche, MD/CEO, GACN, respectively.

According to him, 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 Ltd.

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TribuneOnline reports that the Olorunsogo generation plant at Olorunsogo in Ogun State is an existing NDPHC electricity generation project designed to supply power of about 750MW into the national grid, support the Federal Government’s drive to develop the power sector and, in-turn, grow the Nigerian economy.

Brikinn stated that since natural gas remains the feedstock of the Olorunsogo generation plant, the GSAA for the supply of the major input needed to run the power generation plant comes out as another demonstration of the NNPC/CNL JV’s commitment to the domestic gas market.

In his remarks, CNL’s Director, Downstream Gas, Mr Narasimhalu, noted that the NNPC/CNL JV is currently the largest and most on-spec supplier of gas to the domestic market.

He stated that 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,” Narasimhalu was quoted by Brikinn to have enthused.

The MD, NDPHC, Mr Ugbo, according to the statement, also emphasized the commitment of NDPHC to continue in its drive to find lasting solutions to the power generation challenges in the country.

The MD/CEO of GACN, Engr Okwoche, who reportedly corroborated the positions of other partners, 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.