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This story was first published on the Hawilti+ Terminal on 18 September 2023. Nigeria National Oil Petroleum Company (NNPC), the country’s state energy firm, and Indorama Eleme Petrochemicals Ltd., an entity of the Singapore-based Indorama Group, have signed an MoU that will allow both parties to explore opportunities across Nigeria’s hydrocarbon value chain, as Africa’s biggest oil producer seeks to boost domestic use of natural gas and associated liquids for economic growth. “This is a strategic collaboration to unlock Nigeria’s upstream sector, but more importantly, to partner downstream, in order to share the value chain,” CEO at Africa Indorama Energy Manish Mundra said in an official statement, adding that Nigeria’s gas reserves should position the country as one of the largest producers of urea in the western hemisphere. Privatized in 2006, the petrochemicals and fertilizer complex of Indorama Eleme has become one of Africa’s largest downstream facilities, proving a significant asset to monetize Nigerian gas. The fertilizer plant is well supported by port terminal at the nearby Onne port, and a gas pipeline of 83.5km for gas supply. Located in Port Harcourt, the complex started exclusively with the production of petrochemicals, including 440,000 tpy of olefins and 120,000 tpy of polypropylene. In 2013, a new polyethylene unit was added, which is able to produce 360,000 tpy. Beyond petrochemicals, Indorama Eleme has since made an aggressive venture into the urea and fertilizers business. By 2013, the company secured $1bn to develop a urea train with a capacity of 1.4 million tons per year (tpy), which it completed in 2015 and commissioned in 2016 (Line 1). A second urea train and fertilizer plant was eventually commissioned to enable Indorama Eleme to double its fertilizer production from 1.4 mmtpa to 2.8 mmtpa (Line 2). The company currently plans to expand within the next 6 years in the gas-based heavy manufacturing industries, including fertilizer, methanol, and petrochemicals. According to disclosures by the International Finance Corporation (IFC), Indorama is notably seeking to develop a third urea fertilizer line (Line 3) at the same site to grow urea production capacity to 4.2 mmtpa, To support such expansion, it will need a steady supply of gas feedstock. The agreement reached with NNPC could help monetize over 1.7 Tcf of gas and 100 million barrels of oil reserves. That monetization plan, according to the NNPC, includes downstream production of about 4.8 mmpta of associated products, including methanol, urea, and fertilizer for food security. “NNPC Limited is on the threshold of making value out of gas beyond any imagination,” GCEO, Mele Kyari said, adding as part of Nigeria’s Nigasification strategy to promote domestic utilization of natural gas “we are seeing an annual contribution of $3bn to the nation’s GDP and a lifetime contribution of $18bn to government revenue.” Nigeria holds some of the world’s biggest gas reserves estimated at over 200 trillion cubic feet, but they remain largely underdeveloped, benefiting industrialization and power generation overseas through LNG exports. Boosting local consumption is now at the centre of the government’s agenda as it promotes gas as a transition and cleaner fuel.
The Tetracore Energy Group, a fast-growing gas and power solutions provider based out of Nigeria, has launched a unique graduate management training program in Lagos last week. The initiative is part of the company’s commitment to grow domestic capacity and local content, as a time when African markets are rapidly expanding their domestic gas value-chains. The inaugural program includes 12 young professionals who will receive intensive training around gas, power and new energy, behavioral and soft skills, and business management skills. Tetracore aims at developing their talents and equipping them with the competences they need to solve some of Nigeria’s most pressing energy challenges around gas distribution, clean energy, and power systems. “Growing Nigeria’s energy sector requires the training of capable, competent, driven, and ambitious Nigerian young professionals. As we expand Tetracore’s footprint and welcome new investors, it is of strategic importance that we develop the skills and the manpower the company needs to deliver its sustainable energy solutions,” CEO Olakunle Williams said during the launch ceremony. Nigeria is recognized globally for having one of the most successful local content development frameworks. Under the oversight of the Nigerian Content Development & Monitoring Board (NCDMB), the country has successfully built capacity across the oil & gas sector and saw the establishment of several local businesses from upstream to downstream. However, rapidly evolving technologies and the rapid expansion of Nigeria’s midstream and downstream gas industry requires a new set of skills and competences. Private sector companies must continue to invest in workforce development and talent management as a matter of competitiveness and sustainability. Over the past three years, Tetracore has proven its commitment of building a true pan-African energy company and building local capacity along the way. In December 2020, it was amongst the first local businesses to commission its own locally assembled 15 MMscf/d gas Pressure Regulating and Metering Stations (PRMS) and has continued to grow domestic capacity ever since.
