The Nigerian National Petroleum Corporation (NNPC) and its partners have taken the final investment decision on the construction of a $3-billion methanol-processing plant in the Niger Delta – the first of its kind in the country.
Jointly owned by the NNPC, the Nigerian Local Content Management Board and DSV Engineering Ltd., the plant will process approximately 14 trillion cubic feet of gas from oil fields around the Niger Delta Brass area, while Shell will provide the gas feedstock.
“This project signifies the Federal Government’s effort to maximize value and monetize Nigerian vast natural gas endowment,” said H.E. Timipre Sylva, Nigerian Minister of State for Petroleum Resources. “The project will have significant economic and development impact on the country, including revenue generation and import substitution for the methanol needs of the country that is currently 100% imported.”
Expected to be completed by 2024, the plant aims to spur job creation and generate income, following a reduction in domestic oil output and associated government revenues.
“The project will create 30,000 direct and indirect jobs during construction and about 5,000 jobs during operation,” said Mele Kyari, Managing Director of the NNPC.
According to the NNPC, domestic demand for natural gas is projected to rise from 1.5 billion cubic feet per day (Bcf/d) to 7.4 Bcf/d by 2027, corresponding to the country’s efforts to boost gas monetization and production.