Home Energy FG targets $2bn annually from Escravos Gas-to-Liquid project

FG targets $2bn annually from Escravos Gas-to-Liquid project

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Kyari
Mele Kolo Kyari

The Federal Government is aiming to generate a whopping $2 billion in revenue from the multi-billion dollar Escravos Gas-to-Liquid (EGTL) project just as the Nigerian National Petroleum Corporation (NNPC) and Chevron Nigerian Limited (CNL) inked a deal on Tuesday towards accomplishing this.

NNPC chief, Mele Kyari, who made the disclosure yesterday at the sign-off meeting in Abuja equally affirmed that the synergy would stimulate the domestic gas market with 400 Million Standard Cubic Feet (MMSCF) per day gas supply, translating to 26% of the nation’s domestic gas supply.

Mr Kyari described the EGTL plant as “a cornerstone of the energy ecosystem of Nigeria,” saying it has the potential of improving government’s revenue by $2 billion every year.

Samson Makoji, the NNPC acting Group General Manager, Group Public Affairs Division, said in a statement that Kyari recognised the efforts of President Muhammadu Buhari and Bassey Akpan, Chairman Senate Committee on Gas, culminating in the signing of the agreements.

The Chief Executive Officer of CNL, represented by the Director, NNPC/CNL Joint Venture (JV), Monday Ovuede disclosed that the project would create opportunities for gas commercialisation and monetisation in the oil and gas industry.

He identified part of the values to be created to be provision of clean and environmentally-friendly energy.

Ovuede stated that Chevron was passionate about developing a mutually beneficial partnership with the NNPC in the development of the energy sector.

The climax of the event was the signing of five sets of agreement, including 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.