The Nigerian National Petroleum Company Limited (NNPCL) said it targets an annual contribution of $3 billion to the nation’s Gross Domestic Product (GDP) with its partnership with Indorama Eleme Petrochemicals Ltd.
The Memorandum of Understanding (MOU), aimed at deepening gas utilisation in Nigeria, will also bring a lifetime contribution of $18 billion to government revenue.
In a statement issued by the NNPC’s Group Chief Executive Officer (GCEO), Mele Kyari, and Chief Corporate Communications Officer, Garba Deen Muhammad, the partnership seeks to explore and develop suitable opportunities within the remits of both parties’ interests across the hydrocarbon value chain in Nigeria.
According to him, one of the Company’s roles, as enshrined in Article 64(i) of the Petroleum Industry Act (PIA), is to promote the use of natural gas through the development and operation of large-scale gas utilisation industries.
He said the role is in alignment with Nigeria’s Nigasification Strategy, which is a consolidation of critical programmes embarked upon by the company to utilise natural gas and its associated liquids as the energy source of choice, spur economic growth, free up crude oil for exports, and ultimately enable job creation.
According to him, as part of the company’s vision of operating the largest Petrochemical Hub in Africa, Indorama, which owns the world’s largest single-train Urea Plant located in Port Harcourt, is currently working on expansion plans within the next 6 years in the gas-based heavy manufacturing industries, including fertiliser, methanol, and petrochemicals.
In his remarks, the MD/CEO, Africa Indorama Energy, Manish Mundra, described the partnership as a strategic collaboration to unlock Nigeria’s upstream sector,” but more importantly, to partner downstream to share the value chain.”
He noted that with over 1.7 TCF of gas reserves, Nigeria’s gas reserves should position the country as one of the largest producers of urea in the Western Hemisphere.
Mundra said the key benefits of the opportunities include the monetization of over 1.7 TCF of gas and 100 million barrels of oil reserves, the generation of upstream lifecycle revenue of over $18 billion, and the downstream production of about 4.8 Million metric tonnes per annum (MTPA) of products including methanol, urea, and fertiliser to boost national food security.
Other benefits, he said, include the creation of about 55,000 direct and indirect employment opportunities, the development of a condensate refinery to boost petroleum product supply and reduce product importation, an annual GDP contribution of over $3.8 billion, and the attraction of over $7 billion of foreign direct investment into the country.
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