Olam bags $1.3bn gas deal with Gabon

The agreement with Gabon is to set up a port-based Ammonia-Urea complex.

According to OLAM, a leading global, integrated supply chain manager and processor of agricultural products and food ingredients, the signing of agreement marks an important milestone for their company.

The signed Implementation and Assignment Agreement and Definitive Gas Supply contract with RoG was for a cumulative quantity of 0.75 trillion cubic feet of natural gas for this phase of the Project for a period of 25 years at a competitive fixed price. The gas pipeline network for the delivery of the same is already in place and gas would be ready to be supplied to the Project from July 2014, the expected date of commissioning of this plant. In addition, RoG has allotted land for the Project.

Managing Director and Global Head of Olam’s Agri-Inputs business, Mr V Srivathsan said, “this is a key milestone in the implementation of this important Project as it provides certainty to the supply of natural gas at a competitive price that will allow this Project to be one of the lowest cost urea producers globally".

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