The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari has said the corporation is negotiating to secure a $2.5billion gas pipeline financing arrangement with China.
Concise News gathered that Kyari disclosed this on Monday in an online interview with Bloomberg.
He said that if the agreement sails through, NNPC is to supply 2billion standard cubic feet of gas (SCUF) for 2,600mw to China.
Kyari, who spoke with Bloomberg in the World Energy Conference in Abu Dabhi in Saudi Arabia, noted that the parties are closed to secure the deal.
He added that it would take a maximum of six months for the negotiation to close.
Kyari 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 the closure of 85%, $2.5billion.”
Asked to comment on the 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.
According to him, the cut could become an enormous challenge in the oil market.
He further stated “50% or 5million barrels is quite significant. I know they are still trying to figure out exactly what happened. When a closure is on that, we will be in a position to comment fully. It can be a big challenge for the oil market.”