Notre, NGC sign 20 year gas contract

Notre Chemical Industries, the new owner of the old National Fertilizer Company of Nigeria, NAFCON plant, achieved a project milestone with the signing of a 20 year gas contract with the Nigerian Gas Company, NGC.NGC is a subsidiary of the Nigerian National Petroleum Corporation, NNPC, set up to market and distribute the country's gas locally. NGCbuys gas from oil producing companies and then sells to its consumers.

Under Notre's 20-year contract, NGC will supply the company with an initial 48 MMscf per day, eventually rising to 143 MMscf per day to support Notre's aggressive expansion programme. The company plans to commence production in March 2007 with the production of 1700 tonnes per day of urea, increasing this to 3500 tonnes   by 2010 under a second project phase.  Notre also plans for a 3rd project phase with the construction of a world Scale plant which will take its urea production capacity up to 6500 tonnes per day. The contract will cater for phases one and two of Notre's project plan. According to Jite Okoloko, a director in Notre, "we have achieved a major milestone and we are grateful to Chris Ogiemwonyi, MD of NGC and his team for their support in getting us here. Gas is over 90% of the raw material for our product. So, getting our gas contract in place is fundamental to the continued success of the project.   This is very strategic project for Nigeria's future and economy, and indeed for the rest of the region. We are going to help boost the agricultural sector and increase fertilizer use on the continent. Secondly, as a gas utilization project, we will be reducing gas flaring inn line with the president's proposals to end gas flaring by 2008"

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