A Memorandum of Understanding for the supply of gas was signed yesterday April 24 between SNH, Ferrostaal GmbH and EurOil Ltd.
The National Hydrocarbons Corporation (SNH) yesterday April 24, 2012 signed a Memorandum of Understanding (MoU) with a German company, Ferrostaal GmbH and EurOil Limited for the supply of natural gas to the chemical fertiliser plant to be constructed in Limbe, Fako Division, South West Region.
According to a news release that sanctioned the ceremony at the Conference Hall of SNH, the estimated gas requirements of the fertiliser plant stand at 70 million cubic feet per day for a minimum period of ten years. The parties, the release further states, wish to extend it to 20 years, with the contribution of other potential or identified gas fields on the EurOil operated Etinde permit.
Under the Memorandum of Understanding, the three companies intend to cooper ate towards the evaluation, development and putting on production of gas fields in the EurOil operated Etinde permit. This is within the time limit compatible with the construction of the plant, in order to ensure that the plant is supplied with natural gas as from the end of 2015.
Yesterday’s MoU was the second after the first one signed on October 13, 2011 by SNH and Ferrostaal on the execution of a feasibility study. It emerged from yesterday’s ceremony that the pre-feasibility study was completed by the end of March 2012, and resulted in the preliminary sizing of the plant and the identification of a site for its implementation around Limbe.
The signing of the second Memorandum of Understanding with the involvement of an upstream gas operator, the signatories agreed, marks a major step of the important project which they unanimously underscored is expected to speed up the agricultural revolution advocated by the Head of State, Paul Biya, as part of his policy of “Major Accomplishments.”
The Executive General Manager of the National Hydrocarbons Corporation, Adolphe Moudiki, signed for his corporation, the Chairman of EurOil Limited, Chief Tabetando penned for his while the Senior Vice President Petrochemical Industry of Ferrostaal GmbH, Kaspar Evertz, was represented by two signatories.
The ceremony was attended among others by the German Ambassador to Cameroon, Reinhardt Buchholz.
