Dangote Fertilizer Limited (DIL) has entered into a long-term agreement with Chevron Nigeria Limited (CNL) for the delivery of natural gas from Chevron’s supply portfolio to the fertiliser plant, which is poised to start operations soon
The contract, under the gas sale and aggregation agreement (GSAA) is part of International Oil Company (IOC)’s gas obligation to the domestic market through the Gas Aggregation Company Limited (GACN).
Dangote Fertilizer Limited, which is set to be commissioned before the end of this year, is expected to produce three mmtpa of urea.
The fertiliser plant consists of twin train, with every single train having a capacity of 1.5mn tonnes per annum of urea and ammonia. The total capacity of the plant is three million tonnes per annum, with an area covering 500 ha.
Speaking at the signing ceremony, Devakumar Edwin group executive director, strategy, capital projects and portfolio development at DIL, said that the company is looking forward to having a long-term relationship with Chevron Nigeria Limited as well as synergies in other upstream and wider areas of operations in the oil and gas sector.
