Chevron channels N450bn investment in Niger Delta

Chevron NigeriaLimited has invested over N450 billion ($3 billion) on no fewer than 280 Nigerian firms towards the execution of its multi-billion dollars Escravos Gas-to Liquid (EGTL) project in the Niger Delta region.The EGTL project is to make use of the rich gas resources of the Escravos field, which is now expected to produce 340 million cubic feet of dry gas per day along with 1,200 barrels of condensate and 8,500 barrels of Liquefied Natural Gas (LNG).The EGTL plant has the initial capacity of 34,000 barrel per day (bpd), although it is expected to increase its capacity to 120,000bpd in 10 years after completion.According to a report from Chevron, made made available to Tribune Business, the project had already engaged more than 280 Nigerian sub-contractors and suppliers from the Niger Delta. This, it said, represented about $3 billion (N450 billion) of goods and services into the Niger Delta communities.With a designed life span of 25 years, the EGTL project is expected to continuously provide goods and services, contracts, employment, national and regional capacity building in the region for the next 25 years and beyond.The EGTL plant is part of the overall NNPC/CNL JV gas strategy to monetise stranded gas in the Escravos area. It is designed in compliance with the gas master plan while reducing the routine gas flaring of the associated gas. It covers about 42 hectares of land.'The EGTL is one of the single largest projects ever executed in Nigeria's history. Its legacy will be a successful testament to the fact that complex, mega projects can be peacefully and safely executed in the Niger Delta. The project illuminates the effectiveness of private-public partnership in promoting regional development,' the report said.Chevron said about 23 Nigerian welders were recently sponsored to participate in the fabrication of some of the EGTL modules, which are presently under construction in Abu Dhabi.Apart from the economic benefit, it stated that the project had also significantly impacted on human capital development by upholding the Local Content agenda of the Federal Government.Besides, it stated that the company has employed about 10,000 Nigerian skilled and unskilled construction workers, including management, supervisory and short-term craft personnel.The EGTL plant is capable of converting natural gas into premium environmentally friendly fuel, diesel and EGTL naphtha products. Europe will be the primary market for all fuel products from the Nigerian plant, although some products may be sold in the USA.This plant processes about 150 million cubic feet of gas per day and produces Liquefied Petroleum Gas (LPG) for sale to international markets and pipeline quality gas for domestic uses.
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