Nigeria Signs Gas Supply Agreements With Shell, Chevron for Power Stations

Bloomberg

27 May 2011

Nigeria Signs Gas Supply Agreements With Shell, Chevron for Power Stations

Nigeria’s state-owned energy company signed agreements today with local units of Royal Dutch Shell Plc (RDSA) and Chevron Corp. (CVX) for the supply of natural gas to the country’s power stations.

The two agreements, which cover the supply of more than 70 percent of the total gas requirements to the domestic power industry, serve as a framework for future agreements, Petroleum Minister Diezan Alison-Madueke told reporters today in Abuja, the west African nation’s capital.

“We are now in a position where we can very rapidly replicate these agreements across all other power plants,” she said. “ Although it has taken a while to close the negotiations, the knock-on effect in terms of other agreements that can be immediately executed is phenomenal.”