NNPC, Indorama Sign MoU on Gas Supply

As part of their shared interests in Nigeria’s hydrocarbon value chain, the Nigerian National Petroleum Corporation (NNPC) Ltd and Indorama Eleme Petrochemicals Ltd have signed a Memorandum of Understanding (MOU) to look into and pursue potential business opportunities.

The Group Chief Executive Officer of NNPC Ltd., Mele Kyari, Said: “NNPC Limited is on the threshold of making value out of gas beyond any imagination.”

According to the Petroleum Industry Act (PIA), NNPC is to promote the use of natural gas through the development and operation of large-scale gas utilisation industries.

This 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.

According to Mele Kyari, He said: “We are seeing an annual contribution of $3bn to the nation’s GDP and a lifetime contribution of $18bn to government revenue.”

Africa’s largest Petrochemical Hub, Indorama said it is currently working on expansion plans within the next 6 years, in the gas-based heavy manufacturing industries including fertilizer, methanol, and petrochemicals.

In his remarks, the MD/CEO of Africa Indorof ama Energy, Manish Mundra said: “This is a strategic collaboration to unlock Nigeria’s upstream sector, but more importantly, to partner downstream, to share the value chain.

“Nigeria’s gas reserves should position the country as one of the largest producers of urea in the western hemisphere.”

BENEFITS

• 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.
• Attraction of over $7bn of foreign direct investment into the country.

The NNPC Ltd. 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.