Chevron seals agreement to takeover Escravos Gas-to-Liquids shares

Chevron Nigeria Limited (CNL), operator of the joint venture between the Nigerian National Petroleum Corporation (NNPC) and CNL, has sealed an agreement, directed at buying Sasol Middle East and India (Pty) Limited shares in Chevron Sasol EGTL Limited.

In an email to Vanguard, General Manager, Policy, Government and Public Affairs, CNL, Mr. Esimaje Brikinn, who confirmed the development, stated: “Chevron Nigeria Limited (CNL), operator of the joint venture between the Nigerian National Petroleum Corporation (NNPC) and CNL confirms that Sasol and Chevron have signed an agreement that will see Sasol Middle East and India (Pty) Limited, sell its shares in Chevron Sasol EGTL Limited, to Chevron.

“With the sale of these shares, Sasol’s indirect interest in the Escravos Gas-To-Liquids (EGTL) asset will now be held by CNL.”

According to him, “The EGTL, together with the Escravos Gas Plant (EGP3), provides a reliable flares-out solution and remains a critical part of the overall NNPC/CNL Joint Venture gas commercialization strategy.”

In another message obtained from its website, Chevron stated: “Gas-to-liquids (GTL) is a technology that enables the production of clean-burning diesel fuel, liquid petroleum gas and naphtha from natural gas.

“Natural gas is one of Earth’s cleanest and most abundant energy sources. Natural gas has a far wider market if converted to liquid form because it is easier to transport. The GTL process enables us to transform natural gas into super clean diesel fuel.

“With the expected rise in demand for diesel, GTL technology provides an option to make a fuel with qualities that make significant reductions in emissions possible.

“Chevron operates in some of the world’s leading natural gas basins and is using technology, including GTL, to develop the full spectrum of natural gas resources.

“Together with the Nigerian National Petroleum Corporation, we built a GTL plant designed to convert 325 million cubic feet of natural gas per day into 33,000 barrels of liquids – principally synthetic diesel. The plant supplies clean-burning, low-sulphur diesel fuel for cars and trucks.”