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Thursday, December 7, 2023

JUST IN: NNPC and Indorama sign 5.48trn ($7bn) agreement to promote natural gas usage in Nigeria

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The Nigerian National Petroleum Company Limited (NNPCL) has signed a N5.48 trillion ($7 billion) gas supply deal with Indorama Eleme Petrochemicals Limited.

The company disclosed this in a statement on Saturday, September 16, 2023, in Abuja.

The deal is to promote the use of natural gas by large-scale gas utilization industries.

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The Group Chief Executive of the NNPCL, Mele Kyari signed the agreement for the state-owned oil company while the Managing Director of Indorama, Manish Mundra, represented his company.

The statement read: “NNPC Limited 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.”

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In his address at the event, Kyari said article 64(i) of the Petroleum Industry Act (PIA) allowed NNPCL to promote the use of natural gas through the development and operation of large-scale gas utilization industries.

This, according to him, will ensure NNPC utilised natural gas and its associated liquids to spur economic growth, free up crude oil for exports, and ultimately enable job creation.

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