Efforts to ensure stable power supply received a boost yesterday in Abuja with the execution of two major gas supply agreements between the Power Holding Company of Nigeria (PHCN), the Nigerian National Petroleum Corporation (NNPC), Total, Chevron, Agip and Shell Petroleum Development Company (SPDC).
The agreements consist of the NNPC/SPDC/Total/Agip Sellers’ Representative Agreement; NNPC/CNL Sellers Representative Agreement; Egbin/PHCN-SPDC/Total/Agip Gas Sales & Aggregation Agreement and the Egbin/PHCN-CNL Gas Sales & Aggregation Agreement.
Speaking at the event, Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, said the signing of the gas supply agreements under four different components is envisaged to fast-track stable electricity supply as it would ensure that over 70 per cent of the power sector gas need is met, with Egbin as the anchor power plant.
Beyond the gas supply agreement, the minister also confirmed that the development of gas network code, a code which governs access into transmission network, has been concluded, adding that it would be rolled out within the next few weeks.
The gas supply agreement negotiation between Chevron JV and Nagarjuna Fertilizer Company which would pave way for the take-off of the fertilizer projects next step was also finalised at the event.
On his part, the group managing director of the NNPC, Engr. Austen Oniwon, said the realisation of the gas agenda would unlock a huge gas market for the sector, creating business opportunities for NNPC and its JV partners.
