Chevron & NNPC launch major initiative to end flaring
Chevron and the Nigerian National Petroleum Corp. have launched a major initiative to convert natural gas into clean petroleum fuels and to significantly reduce the amount of gas being flared in their Nigerian joint venture operations.
Under the initiative, US$2 billion will be invested in two projects, the Escravos Gas Project Phase 3 and the Escravos Gas-to-Liquids Development, both targeted for completion in 2005.
Nigerian President Olusegun Obasanjo South African President Thabo Mbeki South Africa were present at a special ceremony in New York to mark the official kickoff of this strategic development in Nigeria.
The Escravos gas-to-liquids facilities will combine technology from Sasol, a South African-based leader in state-of-the-art Fischer-Tropsch technology, and Chevron, a leader in hydroprocessing technology. The projects will be built by Chevron and the Nigerian National Petroleum Corp. (NNPC) adjacent to the joint venture's existing operations at Escravos.
The Escravos Gas Project Phase 3 will process nearly 400 million cf/d of gas that is currently produced along with crude oil and then flared. The plant will extract about 15,000 b/d of natural gas liquids and prepare the natural gas as feedstock for the Escravos Gas-to-Liquids facilities, which will produce about 33,000 b/d of clean fuels, virtually free of sulfur, nitrogen, and other pollutants. These fuels will be marketed primarily in Europe, allowing Nigeria to derive revenue from its large natural gas reserves, which are the eighth largest in the world.
"The gas projects are an integral part of Chevron's growth plans in Nigeria," said Dave O'Reilly, chairman and chief executive officer of Chevron Corp. "We're also excited about this initiative because of its double environmental benefits. First, we're putting out flares from our Nigeria operations, which will bring about a reduction in greenhouse gas emissions, and secondly, gas to liquids (GTL) products are expected to set new global standards for premium high performance, environmentally friendly fuels."
The first phase of the Escravos Gas Project was commissioned in May 1997 and processes about 150 million cf/d of gas for domestic and regional markets. The second phase is expected to come on stream later this year, raising the processing capacity to about 300 million cf/d that otherwise would be flared.
"In addition to the significant environmental benefits of our gas projects, they also represent a major new investment in Nigeria's economy and will provide many jobs during the construction and operational phases," said Ray Wilcox, managing director, Chevron Nigeria Limited. "These projects are only possible through the cooperation and support of the Nigerian government and our partner, NNPC."
Sasol and Chevron announced in June 1999 their decision to create a global joint venture company to develop, implement, and operate GTL ventures and market their products. This company would utilize the complementary skills and technologies of both partners. Formal announcement of the creation of their global joint venture is expected shortly.
Edited by Dev George
Managing Editor, Oil and Gas Online