Nigerian National Petroleum Corporation (NNPC), the Nigerian Local Content Management Board and engineering company DSV Engineering Ltd plan to construct the country’s first methanol processing plant.
The terminal will be located in the Niger Delta of the country. It will process around 14 Tcf of gas from oil fields located in the Niger Delta Brass area. Royal Dutch Shell will provide the required feedstock for the project.
The project is likely to be operational in 2024 and will have a capacity of producing 1.7 million tons of methanol, 1.3 million tons of urea, and 770,000 metric tons of ammonia per year.
Currently, Nigeria relies completely on imports to cater to its domestic methanol requirements. The development of the plant will enable the country to reduce its import dependence and provide an additional revenue stream for NNPC.
Earlier in December 2020, NNPC also announced plans to launch a gas processing facility to produce LPG and CNG using the flared natural gas from the oil fields of the company.