The Nigerian National Petroleum Company (NNPC) Ltd has signed a $7 billion gas supply memorandum of understanding with Indorama Eleme Petrochemicals Limited.
The deal is meant to advance the utilisation of natural gas by large-scale industries.
Speaking at the signing ceremony in Abuja, the group chief executive officer of NNPC, Mr Mele Kyari, said the oil corporation would make the project a reality.
He emphasised the importance of tapping into the country’s dormant gas resources, citing the global recognition of gas as a crucial transitional fuel.
Kyari stated that more than 80 per cent of Nigeria’s power plants rely on gas, underscoring the need to ensure a stable gas supply to sustain industrial activities and create jobs.
Kyari said the collaboration would not only unlock upstream assets for gas production but also establish essential infrastructure for industries, including Urea and fertilizer production.
He also said a significant investment of at least $7 billion in the project would pave the way for expanded cooperation.
For his part, the managing director of Indorama, Manish Mundra, expressed enthusiasm about the partnership, asserting that it would reshape the dynamics of their relationship with NNPC, which has spanned over 16 years.
Mundra stressed the importance of downstream collaboration, emphasising Nigeria’s potential to become a major producer of Urea and methanol on a global scale.
He disclosed plans for investment in additional fertilizer lines, two methanol production lines, and a substantial petrochemical project.
Also speaking, the chief upstream investment officer of NNPC Upstream Investment Management Services (NUIMS), Mr Bala Wunti, revealed that the deal was put together in just three weeks, starting with Kyari’s directive to engage Indorama and explore opportunities for robust gas delivery.
As part of the agreement, 800 million cubic feet of gas will be made available for domestic use, marking a significant step toward harnessing Nigeria’s vast gas resources.
