Chevron, GACN, Dangote seal gas supply deal

Chevron Nigeria Limited (CNL), Gas Aggregation Company Limited (GACN) and Dangote Fertilizer Limited have signed agreement to deliver Liquefied Natural Gas (LNG) from Chevron’s facility to the Dangote Fertilizer plant.

The agreement was signed by the companies at the Department of Petroleum Resources’(DPR) Office in Lagos. According to statements issued by Chevron and Dangote, the fertilizer company will start operations soon.

The contract under the Gas Sale and Aggregation Agreement (GSAA) was part of Chevron’s gas obligation to the domestic market through the Gas Aggregation Company Limited.\

Dangote Fertilizer Limited will be commissioned before the end of the year and expected to produce three million metric tonnes per annum (mmtpa) of Urea. The fertilizer plant consists of twin train with each single train having a capacity of 1.5 million tons per annum of Urea and Ammonia.

The fertilizer plant a total capacity of three million tons per annum and sits on an area of 500 hectares.