By Rita Elenwo
The Nigerian National Petroleum Company Limited has signed an agreement with Indorama Petrochemicals Company Limited aimed at deepening Nigeria’s Nigasification strategy.
The move will bring about $18bn revenue for Nigeria and will enable the NNPCL and Indorama explore and develop suitable opportunities within the remits of both party’s interests across the hydrocarbon value chain in Nigeria.
The Group Chief Executive of the NNPCL, Mallam Mele Kyari who signed the agreement for the national oil company and the MD of Indorama, Manish Mundra signed on behalf of Indorama
Kyari said the NNPCL as the national energy company has one of its roles as enshrined in article 64(i) of the Petroleum Industry Act (PIA) to promote the use of natural gas through the development and operation of large-scale gas utilization industries. He said the agreement is in alignment with its Nigasification strategy which is a consolidation of critical programs embarked upon by NNPCL to utilize natural gas and its associated liquids to be the energy source of choice, spur economic growth, free up crude oil for exports, and ultimately enable job creation.
Indorama plans to operate the largest Petrochemical Hub in Africa, and it currently owns the world’s largest single-train Urea Plant located in Port Harcourt Nigeria.
The company is currently working on expansion plans within the next six years, in the gas-based heavy manufacturing industries including fertilizer, methanol, and petrochemicals.
Kyari said with this alignment of objectives to promote the development and use of natural gas for large-scale heavy gas-based industries, the NNPCL and Indorama, agreed to enter into the MoU.
Listing the key benefits of the pact, Kyari said it would assist in the monetization of over 1.7 TCF of gas and 100 million barrels of oil reserves, generation of upstream lifecycle revenue of over $18bn including government take of over $7bn, downstream production of about 4.8 MTPA of products including methanol, urea, and fertilizer to boost national food security.Follow us on social media