NIGERIA – Chevron Nigeria Limited (CNL) has signed a gas sale and aggregation agreement with Olorunsogo Generation Company Limited aimed at boosting power production at the facility.
Chevron said in a statement that the agreement which was also signed by Niger Delta Power Holding Company Limited (NPHC) and Gas Aggregation Company Nigeria Limited (GACN) would enable it to supply gas to the Genco on an interruptible basis.
Oil and gas multinational also revealed that a daily contract quantity of 0-63,000MMbtu/d of natural gas would be delivered to Olorunsogo Generation Company Limited.
In a statement signed by the General Manager, Policy Government and Public Affairs, Chevron Nigeria Limited, Esimaje Brikinn, the firm said the Olorunsogo generation plant in Ogun State is an existing NDPHC electricity generation project designed to supply power of about 750MW into the national grid.
He said that the plant was also designed to support the Federal Government’s drive to develop the power sector and grow the Nigerian economy.
“Natural gas is the feedstock of the Olorunsogo generation plant,” said Mr. Brikinn.
Brikinn also said that “The agreement for the supply of the major input needed to run the power generation plant is another demonstration of the Chevron Nigeria’s commitment to the domestic gas market.”
CNL’s Director, Downstream Gas, Mr Sanjay Narasimhalu, was quoted as saying that the Nigerian National Petroleum Corporation (NNPC)/CNL Joint Venture (JV) was currently the largest and most on-spec supplier of gas to the domestic market.
He stated that the JV continued to collaborate extensively with other stakeholders in finding creative solutions to issues relating to the domestic gas market.
According to him, the NNPC/CNL JV is committed to supporting the Federal Government’s policy to boost local industries.
The MD, NDPHC, Mr Chiedu Ugbo, was also quoted as saying the NDPHC was committed to continuing in its drive to find lasting solutions to the power generation challenges in the country.
Corroborating the positions of the other partners, the Managing Director of GACN, Mr Morgan Okwoche, said the firm would continue to collaborate with relevant stakeholders in proffering working solutions to issues around the domestic gas market value chain.
Olorunsogo OCGT Power Station Nigeria is located at Papalanto and is operated by Olorunsogo Generation Company Limited.
It is a gas power plant with a design capacity of 750 MW. The plant has four power generation units with the first one being commissioned in 2008.
The agreement with Chevron will greatly benefit the power plant, significantly boosting its ability to operate at full capacity on a regular basis.