The Nigerian National Petroleum Company Limited (NNPCL) yesterday signed a landmark Memorandum of Understanding (MoU) with Indorama Eleme Petrochemicals Limited on gas supply. This is in a bid to promote the use of natural gas by large-scale gas utilization industries. NNPCL disclosed the signing of the MoU via its verified Trade and X handle formerly Twitter.
It said, “NNPC Ltd. signs 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.”
Details of the agreement were not disclosed as the company gave an indication on its social handle that it would later announce details of the agreement. Many industry stakeholders have canvassed more gas utilisation to address the current high cost of fuel in Nigeria.
The included the Major Oil Marketers Association of Nigeria (MOMAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) NNPCL Group Chief Executive Officer, Mele Kyari has a few days ago said the oil company was working with Indorama to see how $7 billion can be invested in petrochemicals in the short term in Nigeria.
He disclosed this during the Nigeria-India Business Forum in New Delhi, India. Kyari said: “Recently, there has been a growing appetite that has produced results in the Liquefied Natural Gas (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,” Kyari said.