Petrochemical plants-Nigeria - The state-run Nigerian National Petroleum Corporation (NNPC) has announced a plan to build a chain of petrochemical plants at a total cost of US$6 billion. The Managing Director of the Port Harcourt Refinery II, a subsidiary of NNPC, Mr. Tony Ogbuigwe, announced the plan at the second Port Harcourt International Oil and Gas Conference (PHIOG 2011) in southern Rivers state, the local Businessday newspaper reported Thursday. When completed, the plants will produce 400,000 tons of methanol as well as other petrochemical products like olefins and ethanol. No timeline has been given for the establishment of the plants.

Ogbuigwe, who stood in for NNPC's Group Managing Director Austin Oniwon, said the feasibility studies of the plants had been concluded, adding: “We are ready to act on this very important project.”

The NNPC built and operated Nigeria’s first multi-purpose petrochemical plant – Eleme Petrochemical Limited (EPCL) - at Eleme near Port Harcourt.

But after the company was left to run down due to lack of maintenance, it was sold in 2006 for US$400 million to the Indorama Group.

After a US$130 million turn around maintenance (TAM) programme, the company has now surpassed its installed capacity and is set to invest US$1.8 billion to expand to other products such as fertiliser and methanol.

Pana 24/06/2011