- President Bola Tinubu’s visit to India to woo investors has already started yielding results
- The NNPCL has just signed a deal with Indorama to generate $18 billion in revenue and create over 55,000 jobs
- The agreement hopes to harness the potential of natural gas and its related liquid products as the preferred energy source
The Nigerian National Petroleum Company Limited (NNPCL) recently entered into a gas supply contract with Indorama Eleme Petrochemicals Limited, aiming to enhance income generation and fortify energy stability.
The Memorandum of Understanding (MOU) between NNPC Ltd. and Indorama comes President Bola Tinubu garnered pledges amounting to $14 billion from diverse Indian investors, affirming his commitment to establish a secure environment for foreign investments.
As per the statement by the NNPCL, the agreement’s execution aligns with their objective of encouraging the adoption of natural gas within the large-scale gas-consuming sectors.
This initiative is anticipated to yield $18 billion in revenue for the federal government and, in the long run, contribute significantly to achieving energy security for the nation.
NNPCL driving Nigeria’s Nigasification strategy
As the nation’s energy corporation, NNPC Ltd. has a pivotal responsibility as defined in article 64(i) of the Petroleum Industry Act (PIA) – that of advancing the adoption of natural gas through the establishment and management of extensive gas utilization enterprises.
This role is in perfect harmony with Nigeria’s Nigasification strategy, a comprehensive initiative undertaken by the company to harness the potential of natural gas and its related liquid products as the preferred energy source.
This strategic approach aims to stimulate economic development, liberate crude oil for export purposes, and ultimately foster job creation.
We are seeing an annual contribution of $3bn to the nation’s GDP and a lifetime contribution of $18bn to government revenue.
As the owner of the world’s largest single-train Urea Plant situated in Port Harcourt, Nigeria, Indorama is presently engaged in expansion initiatives slated for completion within the coming six years.
The company has an aspiration to establish the most extensive Petrochemical Hub on the African continent.
These expansions will encompass a range of gas-based heavy manufacturing sectors, such as fertilizer, methanol, and petrochemicals.
Manish Mundra, Managing Director/Chief Executive Officer of Africa Indorama Energy 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.
Mundra added that with its substantial gas reserves, Nigeria is poised to become a prominent urea producer in the Western Hemisphere.
Key benefits of the NNPCL-Indorama agreement
According to the statement released by the NNPCL, the following key benefits were under listed:
- Monetization of over 1.7 TCF of gas and 100 million barrels of oil reserves.
- Generation of upstream lifecycle revenue of over $18 billion.
- Downstream production of about 4.8 Million Tonnes Per Annum (MTPA) of products including methanol, urea, and fertilizer to boost national food security.
- Creation of about 55,000 direct and indirect employment opportunities.
- Development of a condensate refinery to boost petroleum product supply and reduce product importation.
- Annual GDP contribution of over $3.8 billion.
- Attraction of over $7bn of foreign direct investment into the country.
NNPC makes senior management team changes, announces 3 new appointments
In related news, Legit.ng reported that the NNPCL recently announced a series of alterations to its senior management team.
This development was made public through an official statement signed by Garba Deen Muhammad, who serves as the Chief Corporate Communications Officer of the Company.
According to the statement, released on Saturday, September 16, 2023, NNPC has decided to expedite the departure of its three Executive Vice Presidents who were originally scheduled for retirement in 2024.
This decision is in harmony with NNPC Limited’s adjusted status following the enactment of the Petroleum Industry Act in 2021, as articulated in the Company and Allied Matters Act (CAC).
The senior executives who are departing from their roles include Abdulkabir Ahmed, who held the position of Executive Vice President for Gas, Power, and New Energies; Engr. Adokiye Tombomieye, who served as Executive Vice President for Upstream; and Adeyemi Adetunji, who held the position of Executive Vice President for Downstream.