The Nigerian National Petroleum Company Limited (NNPCL) has signed a landmark Memorandum of understanding with Indorama Eleme Petrochemicals Limited on gas supply in a bid to promote the use of natural gas by large-scale gas utilization industries.
The company announced via its Twitter page on Saturday, September 16.
On September 6, 2023, Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) said that the company is working with Indorama to see how $7 billion can be invested in petrochemicals in the short term in Nigeria.
He said this during the Nigeria-India Business Forum in New Delhi, India alongside President Bola Ahmed Tinubu.
According to Kyari, India is now one of the growing markets for Nigeria’s crude oil, condensates, and liquefied natural gas (LNG), which creates an opportunity for establishing significant investments in both the upstream and downstream sectors of the oil and gas industry in the country.
At the time, Kyari said:
- “Recently, there has been a growing appetite that has produced results in the LNG and liquefied petroleum gas (LPG) market and potentially to expand petrochemical businesses in our country.
- I can tell you one of our colleagues is here, Mr. Manish of Indorama, we are working with them to see a $7 billion investment in the short term to grow our petrochemical and fertilizer business.
- “I know that this won’t work except you have a very stable fiscal environment, an enabling business climate, the sanctity of contracts, and the support of government which is abundant from Mr. President’s determination to have an inclusive business-reliant and business-dependent economy.”
While speaking during the Nigeria-India Business Forum, President Tinubu emphasized that his administration was ready to welcome more investments into the country.
According to him, for years, Indorama faced a persistent issue with NNPCL and when he became aware of the problem, he intervened, and within 21 days, it was resolved.
Consequently, Indorama is now poised to inject funds for further investments, a move expected to fuel growth, generate employment, and fortify the economic landscape.