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Nigeria’s GDP set to grow by $3bn as NNPCL, Indorama seal pact on gas supply

Samuel AkpanSeptember 17, 20231 Mins read3.9k

In its bid to reposition Nigeria as one of the largest producers of Urea in the western hemisphere, the Nigerian National Petroleum Company Limited (NNPCL) has signed a Memorandum of Understanding (MoU) with Indorama Eleme Petrochemicals Ltd.

Malam Mele Kyari, the Group Chief Executive Officer of NNPCL, said the collaboration with Indorama will contribute about $3 billion to the nation’s GDP and lifetime contribution of $18 billion to government revenue.

Kyari stated this in a statement by Garba Deen Muhammad, the Chief Corporate Communications Officer, NNPC Limited, on Saturday and given to Persecondnews in Abuja.

He said the MoU is in line with the company’s mandate in Article 64(i) of the Petroleum Industry Act in promoting the use of natural gas.

NNPCL, he said, is on the threshold of making value out of gas beyond any imagination.

Kyari also said the partnership will trigger 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.

The synergy between NNPCL and Indorama Eleme Petrochemicals Ltd will lead to the creation of 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 MD/CEO, Africa Indorama Energy, Manish Mundra, in his remarks said: “This is a strategic collaboration to unlock Nigeria’s upstream sector, but more importantly, to partner downstream, in order 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.”