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February 21, 2019
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NNPC/Pan Ocean JV Signs Gas Supply and Purchase Agreement with PHCN - As Alison-Madueke Commits to Conclusion of More GSPA Deals Soon
The new gas pricing regime unveiled two weeks ago by the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, has begun to yield dividends with the signing of a Gas Supply and Purchase Agreement (GSPA) between the NNPC/Pan Ocean Joint Venture and the Power Holding Company of Nigeria, PHCN, today.

The Minister who described the signing of the GSPA as a key milestone in the drive to reposition the Nigeria domestic gas market for sustainable growth said with the new gas pricing regime, the gas market is set for unprecedented growth propelled by demand from the power sector and other gas based industries.

Speaking on the significance of the GSPA between the NNPC/Pan Ocean JV and PHCN, Alison-Madueke said: “The importance of today’s event is anchored not only in the size of the gas supply, but in the integrity and robustness of the process for gas access and contracting that this agreement has come to symbolize in the evolving Nigerian domestic gas market.”

The agreement which was signed by Chief Festus Fadeyi, Chairman of Pan Ocean Corporation on behalf of the NNPC/Pan Ocean JV, the Managing Director of PHCN, Engr Hussein Labo, and Dr David Ige on behalf of the Gas Aggregation Company would guarantee the supply of 65mmcf/d of gas from Pan Ocean’s Ogharefe Gas Processing Plant to Egbin Power Plant.

The Minister revealed that apart from the gas supply from the Pan Ocean JV, the Egbin Power Plant is billed to get more gas supplies from the NNPC/Shell Petroleum Development Company JV and the NNPC/ Chevron JV as the GSPA’s for those deals would be signed before the end of the month.

According to her, for the Nigerian gas sector to realize its full potential, the processes that govern it must be bankable and robust enough to attract external financing and the contractual process must be such that enforces performance on all players in the value chain from producer to off-taker, adding that the new GSPA template that has been developed by the federal government is designed to meet those standards.
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