Nigeria to spend $6bn on developing petrochemical plants

24 June 2011 10:27  [Source: ICIS news]

SINGAPORE (ICIS)--The Nigerian National Petroleum Corporation (NNPC) will spend over $6bn (€4.2bn) to develop a chain of petrochemical plants in various locations in Nigeria, according to Business Daily late on Thursday.

Part of the company’s project, which was mandated by the federal government, is to build three refineries at Bayelsa, Kogi and Lagos states.

Some of these plants will produce 400,000 tonnes of methanol and other petrochemical products such as olefins and ethanol, Augustine Oniwon, NNPC’s group managing director, said.

Private refineries have failed to emerge in over six years chiefly because of the high cost of crude oil and lack of government subsidy.

The company’s investment is aimed at meeting the growing demand for petrochemical products in the country.

NNPC built and operated Eleme Petrochemical Limited (EPCL), Nigeria’s first multi-purpose petrochemical plant. The plant was privatised in 2006.

($1 = €0.70)

By: Monica Lesmana

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