Image sourced from https://www.iea.org/etp/tracking2017/naturalgas-firedpower/
Chevron Nigeria Limited (“Chevron”), operator of the joint venture between the Nigerian National Petroleum Corporation and Chevron, last week signed a side letter to the 2011 Gas Sale and Aggregation Agreement (“GSAA”) with Egbin Power Plc (“Egbin”) and the Gas Aggregation Company of Nigeria (“GACN”). This is set out to be the first GSAA in Nigeria that will be successfully made effective between a gas supplier and a power plant - and aims to supply 145MMBtu/d under it.
This is a welcome development, especially considering recent reports on the significant loss in the amount of power generated in the country. According to a power generation fact sheet recently published by the Presidential Task Force, the country witnessed a loss of 337,364 megawatts in the amount of power supplied from August to October 2018. During this same time frame, the power sector lost an estimated N162billion due to insufficient gas supply, distribution and transmission infrastructure. It is hoped that this GSAA will in its own way contribute to the improvement of the country’s power situation by reducing shortage in gas supply.
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