During the weekend, the Nigerian National Petroleum Company Limited, NNPCL signed a Memorandum of Understanding (MoU) with Indorama Energy PTE Limited to reach a supply of about 800 million cubic feet of gas that will make the company invest over $7 billion.
The agreement was signed in Abuja and would require the NNPC to improve the gas supply for Indorama to boost the production of fertilizer, urea, and other products.
Before the deal was signed, the Group CEO, of NNPC Limited, Mr. Mele Kyari, said that the agreement reached with Indorama was in line with the FG plan to boost domestic gas utilization in the country.
Remember that some weeks ago, President Bola Tinubu went to India for the G-20 Summit, after which he got pledges from different industries willing to invest in the country.
Kyari said that the Petroleum Industry Act urges the NNPCL to do everything within its reach to boost gas production and utilization.
The agreement fits into our gasification programme in that whoever needs gas because it is available, must make it available. So that industries can come up, power can be created, and ultimately employment will come and the economy will boom.
We have resources, and we will make available the additional gas that is required. We will partner with Indorama so that we sweat the upstream assets and also produce the gas and go down the chain and create the midstream facilities for these slim industries, urea, increased fertilizer production, and of course, including the creation of a condensate reel finery.
They’re very practical and we’re 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 gateway for us to do more business with you and with others.
And therefore this country is on the threshold of making value out of gas beyond any imagination.
NNPC is currently pursuing many other large-scale gas projects which we could not take forward but we’re now more than ever before determined to ensure that this also progresses.
Even in this project alone, we are seeing an annual Gross Domestic Product (GDP) contribution of over $3 billion in perhaps lifetime government revenues of up to $18 billion for this project because this is a huge project.
Speaking on this also, the MD/CEO of Africa, Indorama Energy PTE, Mr Manish Mundra, said that having worked with the NNPC for 15 years, the new agreement will cause a ripple effect that will boost both company's productivity.
He noted that the company will be investing in two more lines of methanol, two more lines of fertilizer, and a big petrochemical project.
Nigeria has no reason to stay back in terms of the poor downstream sector, that is our responsibility. We have a proven track record in the last 16, and 17 years that we have delivered in terms of world-class projects in record time, globally.
And we will now do the same here and we will surprise the nation, we will surprise everybody. And we would like to also thank Mr. President, for his visionary leadership in allowing this to happen.