Again, Reps to investigate controversy over upgrade of Escravos gas plant

The House of Representatives on Tuesday mandated its committee on gas resources to investigate the contract awarded for the upgrade of Escravos Gas Plant (EGP). House of Representative

The House of Representatives on Tuesday mandated its committee on gas resources to investigate the contract awarded for the upgrade of Escravos Gas Plant (EGP). House of Representative

In a motion moved by the member representing Yenagoa/Kolokuna/Opokuma federal constituency of Bayelsa state, Doure Diri, the House is of the opinion that the audit findings of the Nigerian National Petroleum Corporation (NNPC) on the project needs to be verified House of Representative

See Also: House of Representatives debate 2016

Chevron Nigeria Limited (CNL) (75% share) along with the Nigerian National Petroleum Company (NNPC) (25% share) is constructing the 33,000 barrel per day (bpd) Escravos Gas-to-Liquids (EGTL) plant in Escravos, Nigeria (this is expected to be expanded to a 120,000bpd capacity within ten years of its completion).

The project was 76% complete by June 2011. The Escravos site is located about 100km south-east of the Nigerian capital Lagos. The plant will receive gas from Chevron-operated Escravos Gas Plant (EGP).

With EGTL as the first project using its technology and technical expertise, Sasol Chevron (a joint venture between Sasol and Chevron) is working on the design and development of EGTL and is providing management, operating and technical services to the project owners. Sasol Chevron will also market products from EGTL.

The $8.4bn EGTL project is an integral part of the owner’s overall gas use strategy which includes domestic natural gas sales, regional natural gas sales through the West Africa Gas Pipeline (WAGP), and international sales of GTL products.

The initial estimated cost of the project was revised twice and reached $5.9bn from an initial $1.7bn. New estimates say the project will now cost $8.4bn. Due to the delays and increases in costs, the project is now expected to be completed in 2012 and will be operational in 2013.

The GTL plant will convert natural gas into premium environmentally friendly fuel, diesel and GTL 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.

Although the project is situated in a politically sensitive area, both Chevron and Sasol are confident about bringing the project to fruition by 2012.

Already, Sasol and Chevron have sent 200 Nigerians to South Africa on a 26-month training course at Sasol’s plants in Secunda and Sasolburg.

House of Representative

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