NIGERIA - Proposals.
Many companies had expressed an interest in petrochemical ventures, including ExxonMobil, Shell, ChevronTexaco, Methanex and Penspen. One project considered in 1992 was to build a $400m export-oriented methanol plant using gas produced by Chevron.
The plant, with a capacity of 2,000-2,500 tons/day, was to be a joint venture between NNPC, Penspen, and Mannesmann of Germany, with Chevron invited to have a stake as well. At the time, it was said that ICI had guaranteed purchase of the methanol for at least 10 years after production start-up, which was planned to begin in 1995. The project did not materialise.
Mobil Producing Nigeria (MPN), the second biggest oil producer in Nigeria, had since 1993 discussed a plan to have a methanol complex built near its gas plant on Bonny island with a capacity of 900,000 t/y. This was to be part of the second phase of its development of the Oso gas/condensate field in Eket, east of Port Harcourt (see Gas Market Trends No. 6).
Other projects envisaged by Mobil were an MTBE plant and an ammonia/urea complex. Proposals for these ventures, based on consultancy work done by Mobil Corp. of the US, were presented to the military government in 1993.
The ammonia/urea project continues to figure in ExxonMobil's list of possible ventures in Nigeria, which include a gas-fired power plant to be an IPP. ExxonMobil has no doubt about the potential for petrochemicals demand in Nigeria, with a population of almost 130 million expected to exceed 238 million in 2025 and plenty of cheap gas to provide the feedstock. But it has had major concerns about the non-commercial risks and lack of incentives.
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|Publication:||APS Review Downstream Trends|
|Date:||Aug 18, 2003|
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