02-02-05 The Nigerian National Petroleum Corporation (NNPC) and Chevron Nigeria (CNL) joint venture has concluded arrangements for the signing of an agreement on the commencement of the $ 1.5 bn (about N 199.5 bn) gas-to-liquids project to be sited in Escravos, Delta State, according to Mr Funso Kupolokun, Group Managing Director of the NNPC.
He told in London that the NNPC/Chevron GTL project was one of those being packaged to monetise the country's abundant natural gas reserves and meet President Olusegun Obasanjo's aspiration of earning as much money from gas as oil by the turn of the decade.

He dismissed reports that government had rejected the cost put forward by the contractor chosen by Chevron.
"There was absolutely nothing like that. Next week you will hear from us on the gas-to-liquids project," he said, adding: "We are looking for alternative funding for a number of the oil projects. We are talking of $ 4 bn for funding of the industry in Nigeria this year. That is good. But if we must meet our aspiration of 4 mm bpd by 2007, we need to fund the industry a little more. We will be looking at the possibility of alternative funding for some of the fields.”

“But on the gas side, the story is like this. Mr President wants us to earn as much revenue from gas as oil by the turn of the decade. To do this we will need a 70 mm tons LNG of gas programme before then. In Bonny you have a 22 mm tons programme already. A flurry of announcements are coming up here and there. Recently, there was an announcement of one by Mobil to be sited on Bonny Island, Olokola, Brass LNG and some other announcements are under way.”
"You also have this NNPC/Mobil NGL-2 programme, you have the Chevron gas-to-liquids project which is already ongoing in Escravos and the West African Gas Pipeline project. With all these we begin to feel comfortable that by 2012, we will meet President Obasanjo's dream of earning as much money from gas as oil by the turn of the decade," he said.

Mr Kupolokun said although President Obasanjo's aspiration of earning as much money from gas as oil by the turn of the decade might extend by one or two years, it was important to note that in 1999 when the President assumed office, the country was earning nothing from gas.