April 16, 2024

Nigeria to earn $3.8bn in annual GDP, monetize 1.7 TCF of gas, 100 million barrels of oil reserves from Indorama Eleme Petrochemicals plant

Oredola Adeola

 

The Nigerian Government has announced plans to earn an annual Gross Domestic Product (GDP) contribution of over $3.8bn, monetize over 1.7 TCF of gas, 100 million barrels of oil reserves, and downstream production of about 4.8 million Tonnes Per Annum (MTPA) of products from Indorama Eleme Petrochemicals Limited’s multi-billion-dollar petrochemicals plant at Eleme, Port Harcourt, Rivers State.

 

 

Mele Kyari, Group Executive officer (GCEO) Nigerian National Petroleum Company Limited, made the announcement during the signing of a Memorandum of Understanding (MOU) with Indorama Eleme Petrochemicals Ltd, in Abuja on Saturday. 

 

 

EnergyDay gathered that the MOU aims to explore and develop suitable opportunities within the hydrocarbon value chain in Nigeria. The move is part of Nigeria’s efforts to reduce its dependence on oil and gas, which accounted for 90% of export income in the first quarter of 2022 and 85% of government revenue. 

 

 

According to Kyari, the NNPC Limited is on the threshold of making value out of gas beyond any imagination. He added that suitable opportunities will be explored and developed within the remits of both parties’ interests across the hydrocarbon value chain in Nigeria.

 

 

The GECO further said, “With this project, we are seeing an annual contribution of $3bn to the nation’s GDP and a lifetime contribution of $18bn to government revenue.

 

 

NNPC further stated that the key benefits of the opportunities include the monetization of over 1.7 TCF of gas and 100 million barrels of oil reserves, generation of upstream lifecycle revenue of over $18bn, downstream production of about 4.8 million Tonnes Per Annum (MTPA) of products including methanol, urea, and fertilizer to boost national food security.

 

 

“Other benefits 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, annual GDP contribution of over $3.8bn, and attraction of over $7bn of foreign direct investment into the country.

 

 

The national energy company NNPC Ltd. therefore emphasised that the MOU with Indorama follows Nigeria’s President Bola Ahmed Tinubu’s commitment in India a few weeks ago, to strengthen business relations between both countries.

 

 

The NNPCL emphasised that its 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.

 

 

It added that the role is in alignment with Nigeria’s Nigasification strategy which is a consolidation of critical programs embarked upon by the company to utilise natural gas and its associated liquids to be the energy source of choice, spur economic growth, free up crude oil for exports, and ultimately enable job creation.