Chevron Powering The Energy Transition with Domestic Gas Supply in Africa
By Tobi Owoyimika
Chevron is powering the Energy Transition with domestic gas supply in Africa through its subsidiary companies in the African continent. The company has said that the continued development of Africa’s energy sector is a critical factor in contributing to the continent’s growth potential.
Through Chevron’s major investments in several African countries, Chevron is building on its existing assets and making giant strides in Africa for more than a century.
Today, Chevron is ranked among the top petroleum producers in Nigeria and Angola. Other areas on the continent where the company holds interests include Benin, Egypt, Ghana, the Republic of Congo and Togo.
A SAIPEC 2021, Sanjay Narasimhalu, Chevron’s Director of Downstream Gas, Nigeria/Mid-Africa Business Unit, made a keynote presentation during the panel session titled “IOCs perspective on Dynamics’s of Sub Saharan Africa’s Energy, Oil and Gas as we Strive to a Low Carbon Future”
In his words, he highlighted that Chevron is an active player in building a secured oil and gas future in Africa, adding that the company holds a strong position in West African countries including Nigeria and Angola.
He said: “Africa has abundant hydrocarbon reserves including substantial gas reserves but it remains significantly untapped which can drive the continent for economic and social growth.
“The continent is also blessed with a large population of talented young people that will develop a strong workforce for a sustainable future.
“We have a strong footprint in Africa’s oil and gas industry with significant investment. Chevron continues to invest globally with its partners in countries in Africa making it a significant contribution to boosting the region’s Gross Domestic Product (GDP).
“In Nigeria, we have been operating close to 60 years. Our key focus is reducing routine gas flaring and over the past 10 years, we have been able to reduce gas flaring by over 95%.
“We will continue maximising gas supply to the domestic market here in Nigeria. Our gas strategy is to end routine gas flaring and build a profitable gas business on projects which support the Nigerian Gas Masterplan.”
One of the first major investment Chevron brought into Nigeria is the Escravos Gas Project. The project positioned Chevron Nigeria Limited (CNL) as one of the pioneers in creating practical economic solutions for gas flaring in the Nigeria oil and gas industry.
According to the company, the Escravos Gas to Liquid (EGTL) plant serves as a significant driver to reduce gas flaring.
Speaking about the gas value chain in Africa, Sanjay explained that Chevron has led major developments in the West African Gas Pipeline (WP) project.
He said, “The WP project transports gas from Nigeria to West African countries such as Ghana, Togo, Benin which have helped to boost their economies.
“In Angola and the Republic of Congo, Chevron continues to spur global efforts to reduce flaring and carbon emissions with investment to improve the country’s environmental performance, reducing flaring on fuel gas usage.
“ALNG is the first LNG project in Angola and one of the largest energy project in the African continent.
“The Angolan Liquified Natural Gas (ALNG) Project is commercialising natural gas resources in West Africa which contributes to the Angolan natural gas industry.
ALNG is operated by the Angolan LNG joint venture. It commercialises associated natural gas produced by Chevron and other operators.
“In 2016, work was completed in the plant modification and production has started. ALNG supports offshore field development with the capacity to process about 1.1 billion cubic feet of natural gas which helps Chevron meet the global demand for a cleaner natural gas.
“Chevron holds 38% interest in the 87 miles kilometres pipeline which is designed to transport about 250 million cubic feet of gas from Block 0, Block 14, to the ALNG plant. Gas flow started in September 2016.”
He added, “Chevron will continue to enhance gas utilisation with a focus on areas that have a significant multiplier effect.
“We have supplied gas to some number of plants here in Nigeria such as the Egbin Power Plant. We have signed several gas contracts with major power companies and gas-based industries such as the Dangote Fertilizer Plant.
“We are committed to further unlock Africa’s oil and gas resources for sustainability and productivity.”
Chevron also holds a 36.7 percent interest in the West African Gas Pipeline Company Limited, which supplies Nigerian natural gas to customers in Benin, Ghana and Togo.
In Angola, Chevron’s major operations include two exploration and production concessions – Block 0, off the coast of Cabinda province, and Block 14, in deep water. Gas export to Angola LNG (liquefied natural gas) began in 2017. We have a 36.4 percent interest in the 5.2 million-metric-ton-per-year Angola LNG plant in Soyo, the world’s first LNG plant supplied with associated gas, which is natural gas produced as a byproduct of crude oil production.
