Home Opinion Gas Development in Nigeria – The Chevron Nigeria’s Success Story

Gas Development in Nigeria – The Chevron Nigeria’s Success Story

Gas Development in Nigeria - The Chevron Nigeria’s Success Story

Nigeria/Mid-Africa at a training programme at School of Media and Communication, Pan Atlantic University, Ibeju Lekki, Lagos.

Chevron has a long commitment to Nigeria for over 50 years with significant investments made in the country including gas development, and we expect to do so for many more years to come.

The NNPC/CNL JV is continuing its efforts to monetize recoverable natural gas resources through a combination of domestic consumption and export to the West African region.

Over the last 5 years, the NNPC/CNL JV has remained the number one supplier of high quality gas for domestic utilization, and has supplied 40% of total gas sales to the Nigeria domestic market.

The JV continues to supply the larger portion of its produced gas for domestic utilization – to Power plants (EGBIN) and to GasBased/Conversion Industries (including the Escravos Gas To Liquid (EGTL) plant and, more recently, contract for supply to the upcoming Dangote Fertilizer Plant at Ibeju-Lekki

Chevron Nigeria Limited has executed various gas projects since 1997, most recently, the Sonam Gas Project, commissioning/start-up in 2017 © 2018 Chevron Nigeria. © 2019 Chevron Corporation 10
NNPC/CNL JV Gas Projects… a major stride in gas utilization

Chevron Nigeria Limited operates the Escravos Gas Plant (EGP), first built in 1997 and currently has a total processing capacity of 680 million cubic feet per day of natural gas after two expansions Sonam Gas Development (Project Flacon) Being an excerpt from a paper presented by James Okereke GM – Downstream Gas Chevron
The Third-Party Financed Sonam Gas (Project Falcon) was borne out of the company’s commitment to supporting Nigeria’s gas development aspirations. Sonam gas field is expected to deliver a total of 215 million cubic feet of natural gas per day to the domestic gas market and produce a total of 30,000 barrels of liquid per day. The project started beneficial operations in 2017

NNPC/CNL JV Gas Projects… a major stride in gas utilization Escravos Gas-To-Liquids(EGTL): The facility is designed to process 325 MMSCFD of natural gas from the EGP and convert the natural gas into 33,000 Bpd of GTL diesel, naphtha and LPG. Plant operations commenced in 2014 West African Gas Pipeline Company (WAPCO): Chevron holds a 36.7% interest in the West African Gas Pipeline Company Limited (WAPCO); the regional gas transporter. The WAGP was originally built to supply Nigerian gas to markets in Ghana, Benin & Togo primarily for power generation.

WAGP has the capacity to transport about 340 MMCFD. First supply began in 2008

The Global gas market is fast evolving, and the gas sector is becoming even more important for Nigeria. The good news is that. Nigeria is blessed with the resources to compete on a global scale.Nigeria has made significant progress in creating value from its gas resources beyond flares out, due to the support and cooperation from all stakeholders.

The expectations for the gas sector in Nigeria remain high and provide opportunities for investment in the sector Gas supply should not be treated as a stand-alone, rather than a significant part of the value chain
Investor confidence remains low, particularly in the gas supply chain. So, it is critical that the ongoing legislative and policy efforts ensure that Nigeria is globally competitive to unlock these vast resources.
In summary, sustainable gas development in Nigeria requires a collaborative value chain mindset. With this and other key enablers, Nigeria should benefit from its huge gas resources to develop its economy.

James Okereke is the General Manager, Downstream Gas Chevron Nigeria/Mid-Africa

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