- Deal expected to strengthen gas supply to power plants, industries and improve pipeline utilisation
- Partnership advances Nigeria’s Decade of Gas agenda through standardised gas transportation framework
Chevron Nigeria Limited (CNL) and the Nigerian National Petroleum Company (NNPC) Gas Infrastructure Company Limited (NGIC) have signed a Network Entry Agreement (NEA) that will enable the delivery of 350 million standard cubic feet of natural gas per day (350MMscf/d) into the Escravos–Lagos Pipeline System (ELPS), in a move expected to strengthen domestic gas supply to power plants, industries and other strategic consumers across Nigeria.
The agreement, executed under the Nigerian Gas Transportation Network Code (NGTNC), provides the contractual framework for injecting gas from Chevron’s Escravos Gas Plant into Nigeria’s national gas transmission network, supporting improved infrastructure utilisation, operational efficiency and energy security.
The agreement was signed in Abuja on the sidelines of the 25th Nigeria Oil and Gas (NOG) Energy Week by Segun Kuteyi and a representative of NNPC Gas Infrastructure Company Limited.
Chairman and Managing Director of Chevron Nigeria Limited, Jim Swartz, said the agreement reinforces the commitment of the NNPC Limited/Chevron Joint Venture to delivering safe, reliable and efficient gas supplies in support of Nigeria’s gas development objectives.
According to him, integrating the Escravos Gas Plant more closely with NGIC’s transportation infrastructure will enhance energy security, optimise the utilisation of existing pipeline assets and generate long-term value for the Nigerian economy.
“This agreement demonstrates our commitment to supporting Nigeria’s domestic gas aspirations through safe and reliable gas delivery,” Swartz said.
Chief Corporate Affairs Officer of Chevron Nigeria Limited, Olusoga Oduselu, explained that the Network Entry Agreement establishes the operational and contractual framework governing gas delivery between the NNPC/Chevron Joint Venture and NGIC in accordance with the Nigerian Gas Transportation Network Code.
He said the agreement clearly defines procedures for gas delivery, operational interface management and information exchange between the Escravos Gas Plant and the national transmission network, while ensuring compliance with national standards for safety, integrity and operational efficiency.
According to Oduselu, adopting a standardised Network Entry Agreement aligns Nigeria with international best practices adopted by countries operating centrally coordinated gas transmission systems, where uniform contractual arrangements govern gas injection and offtake.
He added that the agreement further strengthens NGIC’s role as the national gas network operator while supporting the development of a more transparent, efficient and reliable domestic gas transportation market.
The latest agreement represents another milestone in Nigeria’s efforts to expand domestic gas utilisation, improve pipeline efficiency and accelerate implementation of the Federal Government’s Decade of Gas initiative, which seeks to leverage the country’s abundant natural gas resources to drive industrialisation, improve electricity generation and support economic diversification.
