The Nigerian National Petroleum Company (NNPC) Limited has announced the signing of a significant memorandum of understanding (MoU) with Indorama Eleme Petrochemicals Limited (IEPL) for gas supply.
The announcement is contained in the NNPC Limited statement via its Twitter signed by Garba Deen Muhammad, the Chief Corporate Communications Officer of the company, Saturday.
TheCable reports that the agreement, valued at approximately $7 billion, aims to advance the utilization of natural gas within large-scale gas-dependent industries.
“We are seeing an annual contribution of $3bn to the nation’s GDP and a lifetime contribution of $18bn to government revenue,” NNPC Ltd.’s GCEO, Mele Kyari said.
“As part of the company’s vision of operating the largest Petrochemical Hub in Africa, Indorama which owns the world’s largest single-train Urea Plant located in Port Harcourt, Nigeria, is currently working on expansion plans within the next 6 years, in the gas-based heavy manufacturing industries including fertilizer, methanol, and petrochemicals.”
The statement says the collaboration is a direct result of the recent Nigeria-India presidential roundtable and conference held during the G20 summit. During the event, several Indian conglomerates, including Indorama Petrochemical Limited and Jindal Steel and Power Limited, made substantial investment commitments in Nigeria, totalling $14 billion and IEPL, pledged $8 billion to expand its fertilizer production and petrochemical facility in Eleme, Rivers state.
IEPL, a subsidiary of the Indorama Corporation, specializes in producing a wide range of polyethene and polypropylene products known as poly-olefins.