NNPC, China negotiate $2.5bn gas pipeline deal

The Group Managing Director (GMD) of Nigerian National Petroleum Corporation (NNPC), Mr. Mele Kyari, has said that the corporation is in talks with China for a $2.5 billion gas pipeline financing arrangement, Blomberg has reported.

According to the newspaper, Kyari, who spoke at the World Energy Conference in Abu Dhabi in Saudi Arabia, added that if the agreement sails through, NNPC is to supply Two billion standard cubic feet of gas (SCUF) for 2,600mw to China.

The negotiation is expected to last for six months.

His said: “As you have mentioned, this project will deliver 2,600mw of power. Also, supply copper gas. That is quite significant in the context of our situation.

“What we did is to get a long conversation with the Chinese. We are very close to closure. We have secured 15% financing in our account. We are expecting closure of 85%, $2.5billion.”

On ongoing discussions about building the gas pipeline in Nigeria, Kyari said “Because of issues of the fiscal environment which is uncertain, it has kind of stalled the process.”

He added that the NNPC has been very close to the Chinese in order to collaborate to open fresh opportunities.

Commenting on the recent OPEC quota cut, the NNPC chief said that 50 percent that is equivalent to 5million barrel is quite significant.

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