The Nigerian National Petroleum Company Limited (NNPCL) has recently signed a significant Memorandum of Understanding (MoU) with Indorama Energy Pte Limited, a deal that promises to bring over $7 billion in investments. This agreement, forged in Abuja, revolves around supplying approximately 800 million cubic feet of gas to support Indorama’s fertilizer and urea production.Thank you for reading this post, don't forget to subscribe!
Before the official signing, Mr. Mele Kyari, Group CEO of NNPC Limited, emphasized that this accord aligns with the Federal Government’s efforts to enhance domestic gas utilization. He underscored the Petroleum Industry Act’s mandate for NNPCL to promote gas production and utilization, emphasizing that making gas readily available is vital for industrial growth, energy generation, job creation, and overall economic prosperity.
Kyari stated, “NNPC is currently pursuing very many other large-scale gas projects which we could not take forward, but we’re now more determined than ever before to ensure that this also progresses.” He also noted that this project alone is expected to contribute over $3 billion annually to Nigeria’s Gross Domestic Product (GDP) and potentially generate up to $18 billion in government revenues over its lifetime.
Mr. Manish Mundra, MD/CEO Africa of Indorama Energy Pte, spoke about their long-standing partnership with NNPC and the transformative nature of this new agreement. Indorama Energy plans to invest in additional fertilizer production lines, methanol production lines, and a substantial petrochemical project, positioning Nigeria as a major urea producer in Africa.
Mundra emphasized their commitment to Nigeria’s downstream sector and expressed confidence in delivering world-class projects within set timelines. He thanked the country’s leadership for their visionary approach in facilitating this collaboration.
Providing insight into the project’s scope, Mr. Bala Wunti, Chief Upstream Investment Officer of NNPC Upstream Investment Management Services (NUIMS), explained that the project involves gas drilling and development, building a robust gas delivery infrastructure via pipelines, and establishing a condensate refinery. Anticipated outcomes include the supply of 800 million scuff of gas for domestic use, with a portion allocated to Indorama and the remainder serving the broader domestic market’s power, commercial, and industrial needs, especially in eastern Nigeria.