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Petrochemical plants: FG signs MoU with Saudi Arabia, India

By on March 28, 2011

The Federal Government has signed a memorandum of understanding (MoU) with the Kingdom of Saudi Arabia and India for the construction of two fertilizer plants which is regarded as a bold step to diversify the Nigerian economy and reverse the trend of dependence on the export of hydrocarbon resources.

Speaking in Abuja last week at the launch of gas revolution, President Goodluck Jonathan said Nigeria had no excuse for the absence of productive industries and the high rate of unemployment, considering its enormous proven gas reserves put at 187 trillion cubic feet.

The Group Managing Director, Nigerian National Petroleum Corporation, (NNPC), Mr. Austen Oniwon, signed on behalf of the Federal government while representatives of Xenel (Saudi Arabia), Mr. Khalid Ibrahim Zagzoog and Mr. Kanumuri Satya Raju, who represented Nagarjuna Fertilizers and Chemical Ltd. (India); Mr. Giro Antonio Pagano and Mr. Wale Tinubu signed for the Agip/Oando Consortium.

The president said the aggressive and forceful nature of his administration’s ambition to re-industrialize the country was akin to a revolution which could turn around Nigeria’s economic fortune with a potential to create over 600,000 jobs.

Listing the benefits of the gas based projects to the overall development of the nation’s economy, President Jonathan said apart from massive job creation, the gas pipelines from the south to the north would ensure adequate supply of natural gas to the textile and allied industries which had shut down as a result of high cost of fuel oil, adding that the petrochemical and fertilizer plants would signal the end of gas flaring in the country

“The fertilizer plants and their customized blending plants will result in a radical transformation of our nation’s agricultural productivity from subsistence farming to full scale industrial farming.  The concept of customized blending plants as introduced by this project will ensure that the fertilizer is formulated to suit the type of soil in the zone, resulting in enhanced productivity.  Increased productivity will lead to the establishment of many agro processing industries to cope with the production growth that will emerge,” he explained.

Source : Tribune