The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) has signed a Memorandum of Understanding (MoU) with Africa Indorama Energy Petrochemical Ltd. to supply 800 million scuff of gas to promote industrialisation in Nigeria.
Malam Mele Kyari, Group Chief Executive Officer, NNPC Ltd., said this during the signing of the MoU in Abuja on Saturday.
He said the aim of the MoU was to ensure that Nigeria’s abundant gas resources were harnessed.
According to him, the project is expected to contribute common revenue of 3.8 billion dollars annually to the Gross Domestic Product (GDP) and up to 18 billion dollars in its lifecycle.
He said the project would boost downstream production of about 4.8 Million Tonnes Per Annum (MTPA) of products including methanol, urea, and fertiliser.
He added that it would also create about 55,000 jobs, develop a condensate refinery to boost petroleum product supply and reduce product importation.
Kyari expressed satisfaction with the commitment of Indorama, which would invest at least 7 billion dollars in the project at the initial stage.
He said President Bola Tinubu’s directive was very clear and also aligned with the determination of NNPC Ltd. to ensure delivery on its gasification project.
“Because gas is available, we must make it available so that industries can come up; power and resources can be created, ultimately employment can be created and economy will boom.
“There is a huge connection between harnessing gas resources and this. My team and I will do everything possible to deliver this huge project,” said Kyari.
According to him, Nigeria is on the threshold of getting value out of gas, and NNPC is currently pursuing many large scale gas projects with the determination to achieve progress.
The Managing Director and CEO of Indorama, Mr Manish Mundara, said the company had proven track record in partnerships with NNPC for over 16 years.
He added that the duo had worked together in petrochemicals and fertiliser, and that the strategic collaboration had delivered world class projects.
“Nigeria’s gas reserves and its strategic location should position it as one of the largest producers of urea, ammonia, methanol and petrochemicals polymers.
“While we are working together on gas resources, we will partner the downstream and invest in at least two more lines of fertiliser, two lines of methanol and one big petrochemical project, among others.
“This will make Nigeria one of the largest producers of urea in Africa and the Western Hemisphere. The ball is rolling now, it’s our responsibility to work together and distribute benefits of industrialisation,” he said.
Earlier, Mr Bala Wunti, Chief Upstream Investment Officer, NNPC Upstream Investment Management Service (NUIMS), said the scope of the MoU involved assurance for gas delivery to meet the gas based industry.
“Overall, we anticipate that at the peak of the project, about 800 million scope of gas will be made available for domestic use, part of which will be used to provide the needed quantity of gas by Indorama.
“And the balance will be supplied to the domestic market to meet power demand, commercial and other activities, particularly in the eastern part of the country,” Wunti said. (NAN)(www.nannews.ng)
Source: News Agency of Nigeria