Fed Govt eyes $2b yearly from Escravos gas to liquid project

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mele Kyari yesterday said the Escravos Gas-to-Liquid (EGTL) project is capable of fetching the Federal Government $2billion yearly.

NNPC and the Chevron Nigeria Limited (CNL) have executed agreements on the multi-billion dollar EGTL project.

Speaking at a sign-off meeting in Abuja, Kyari said CNL would boost the domestic gas market with 400million standard cubic feet per day (MMScfp/d) gas supply, equivalent to 26 percent of total domestic gas supply in the country.

Kyari, who described the EGTL plant as “a cornerstone of the energy ecosystem of Nigeria” in a statement, said it had the potential to yield $2billion yearly into the coffers of the Federal Government.

 

He acknowledged the roles played by President Muhammadu Buhari and the Chairman, Senate Committee on Gas, Sen. Bassey Akpan, which he noted had culminated into the execution of the agreements, assuring that the Federal Government was committed to the project.

In his remarks, the Chief Executive Officer of CNL, who was represented by the Director, NNPC/Chevron Nigeria Limited Joint Venture (JV), Mr. Monday Ovuede, said the project would open up opportunities for gas commercialisation and monetisation in the oil and gas industry.

Ovuede stressed that one of the values would include the provision of clean and environmentally friendly energy.

He assured of his organisation’s commitment to foster a mutually beneficial relationships with the corporation in the energy sector.

The highpoint of the event was the signing of five sets of agreements which include the Settlement Agreement; Amendment to the Venture Agreement; Sales and Purchase Agreement; Depository Agreement for Special Purpose Vehicle; and Agreement for Power of Attorney to be given to CNL as the representative of the sellers.

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