Lazi Writa
Abuja, September 16, 2023 – In a significant move toward advancing Nigeria’s Nigasification strategy, NNPC Ltd. has entered into a Memorandum of Understanding (MOU) with Indorama Eleme Petrochemicals Ltd. The collaboration aims to explore and develop opportunities across the hydrocarbon value chain in Nigeria. This partnership holds immense promise for the nation’s economic growth and energy sustainability.
A Pivotal Agreement
NNPC Ltd., as the national energy company of Nigeria, plays a crucial role in promoting the use of natural gas as stipulated in Article 64(i) of the Petroleum Industry Act (PIA). The recent MOU signed with Indorama Eleme Petrochemicals Ltd. signifies a strategic effort to leverage natural gas resources effectively.
Nigasification Strategy: Fueling Economic Growth
Nigeria’s Nigasification strategy represents a concerted effort to harness the potential of natural gas and its derivatives. By embracing this approach, NNPC Ltd. aims to achieve several key objectives:
1. Economic Value
NNPC Ltd.’s GCEO, Mele Kyari, envisions a remarkable economic impact. He asserts, “NNPC Limited is on the threshold of making value out of gas beyond any imagination.” The project is expected to contribute $3 billion annually to the nation’s GDP, with a lifetime contribution of $18 billion to government revenue.
2. Petrochemical Hub Expansion
Indorama, already a major player in Nigeria with the world’s largest single-train Urea Plant in Port Harcourt, plans to expand its operations within the next six years. This expansion includes the development of gas-based heavy manufacturing industries such as fertilizer, methanol, and petrochemicals.
3. Urea Production Boost
Manish Mundra, MD/CEO of Africa Indorama Energy, emphasizes the strategic collaboration’s potential to position Nigeria as one of the largest producers of urea in the western hemisphere. This aligns with the goal of boosting national food security.
Key Benefits of the Partnership
The collaboration between NNPC Ltd. and Indorama Eleme Petrochemicals Ltd. is poised to deliver a range of significant benefits:
1. Resource Monetization
The partnership will enable the monetization of over 1.7 TCF of gas and 100 million barrels of oil reserves, leading to substantial revenue generation.
2. Upstream and Downstream Impact
Anticipated upstream lifecycle revenue is projected to exceed $18 billion, while downstream production is expected to reach about 4.8 Million Tonnes Per Annum (MTPA) of products, including methanol, urea, and fertilizer. These outputs will contribute to national food security.
3. Job Creation
The collaboration is set to create approximately 55,000 direct and indirect employment opportunities, making a significant contribution to Nigeria’s labor market.
4. Petroleum Product Supply
To reduce product importation, a condensate refinery is in the development plans. This will enhance petroleum product supply within the country.
5. Economic Contributions
Beyond job creation, the partnership is anticipated to make an annual GDP contribution of over $3.8 billion, fostering economic growth.
6. Attracting Foreign Investment
The collaboration also has the potential to attract over $7 billion in foreign direct investment into Nigeria, which will further bolster the nation’s economic prospects.
Strengthening Bilateral Relations
The NNPC Ltd. MOU with Indorama Eleme Petrochemicals Ltd. aligns with Nigeria’s commitment to strengthening business relations with other nations. This commitment was reaffirmed by President Bola Ahmed Tinubu during his recent visit to India.
In conclusion, the collaboration between NNPC Ltd. and Indorama Eleme Petrochemicals Ltd. holds immense promise for Nigeria’s energy sector, economic growth, and job creation. It exemplifies a strategic step toward realizing the Nigasification strategy’s objectives and reinforces Nigeria’s position as a key player in the global energy landscape.
Signed: Garba Deen Muhammad
Chief Corporate Communications Officer
NNPC Ltd.
Abuja
16.09.2023
GIPHY App Key not set. Please check settings