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Saturday, July 13, 2024

Indorama, NNPCL partnership to produce $7bn gas investment

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The Nigerian National Petroleum Company Limited (NNPCL) and Indorama Energy Ltd. signed a memorandum of understanding on Saturday for the development of a multi-billion dollar gas project in Nigeria.

During the event, the NNPCL’s Group Chief Executive Officer, Mele Kyari, announced that Indorama would invest at least $7 billion in the project, adding that the initiative would make Nigeria one of the largest producers of urea and fertilizer.

“We are happy with the commitments of Indorama that they are out to invest at least $7 billion on this project in the short term, and perhaps this will open more gateways for us to do more business with you and with others.

“Therefore, this country is on the threshold of making value out of gas beyond any imagination. Also, NNPC is currently pursuing many other large-scale gas projects,” Kyari stated.

He said the project would contribute about $3 billion worth of gross domestic product annually to Nigeria’s economy, adding that President Bola Tinubu had ordered the NNPCL to provide gas to the Indian firm.

“Mr. President’s directives are very clear, and they also speak to the determination of the NNPC to ensure that we deliver on gas projects. And whoever needs gas because it is available, we must make it available.

“This is so that industries can come up, power can be created, and ultimately employment will come, resources will be created, and the economy will boom. So it is clear that there is a huge connection between harnessing gas resources and this.

“And therefore, when Mr President said, ‘Find gas for Indorama, We had no difficulty coming up with a solution, and the solution is very simple. We have the resources, and we will make available the additional gas that is required, and we will partner with Indorama,” the NNPCL boss added.

Kyari said the partnership would lead to an increase in the production of fertilizer and urea in Nigeria, adding that a condensate refinery would be created as a result of the deal.

On his part, the Managing Director and Chief Executive Officer, Africa, of Indorama Energy Pte Ltd., Manish Mundra, described the partnership as a strategic collaboration to position Nigeria as the largest producer of urea and fertilizer.

He said, “Nigeria’s gas reserves and Nigeria’s strategic location should position Nigeria as one of the largest producers of urea, ammonia, methanol, and petrochemical polymers.”

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