USTDA Supports New Petrochemical Production in Nigeria
March 20, 2014
(USTDA)
Partners with Honeywell Group of Nigeria to Diversify Petrochemical Industry
WASHINGTON, DC – Today, the U.S. Trade and Development Agency awarded a grant to
Honeywell Group Limited (Lagos, Nigeria) for a project that will assess
different product streams for fertilizer and petrochemical facilities in
Nigeria. The feasibility study will include an analysis of alternative
petrochemical facilities including methanol, fertilizer chemicals and
petrochemicals that could produce ethylene, propylene, or benzene products. The
study will recommend which of these facilities should be included in the
proposed gas-based industrial complex, the size and scale of the facilities, the
sources of feedstock and the optimum location for the various options. In
addition, the study will assess the domestic and international markets for the
output of the facilities, as well as the capital costs required, which could
exceed $3 billion.
The $257,000 grant agreement was signed by the Deputy Chief of Mission Maria
Brewer on behalf of USTDA, and by Dr. Teddy Ngu on behalf of Honeywell Group.
In addition to USTDA's contribution under the grant agreement, Honeywell Group
will contribute $257,000 toward the completion of the study, for a total project
cost of $514,000.
During the signing ceremony, Dr. Ngu stated, "The Honeywell Group strongly
welcomes the opportunity to partner with USTDA in funding a study to assess
opportunities in the petrochemicals sector. The Group's plan to move into this
industrial sector is premised on our strong track record of building successful
and sustainable Nigerian businesses. In addition, Government policies are
increasingly focused on opportunities that effectively utilise the Country's gas
resources. We believe our initiative will lead to an attractive and executable
project which will stimulate employment and economic growth throughout Nigeria.
This partnership will help kickstart our initiative and we look forward to
continuing to work with USTDA to achieve our goal of developing a world-class
gas-based industrial complex."
The feasibility study will assist Honeywell Group in helping to realize
Nigeria's potential within the petrochemical market. Nigeria is the twelfth
largest producer of petroleum and possesses the seventh largest natural gas
reserves in the world. However, according to The World Bank, Nigeria is second
only to Russia in the volume of gas flared, and its gas reserves are mostly
unutilized.
The opportunity to conduct the USTDA-funded feasibility study will be competed
on the Federal Business Opportunities (FBO) website. A link to the FBO
announcements will be posted to USTDA's website at www.ustda.gov. Interested U.S. firms should
submit proposals according to the instructions in the FBO announcements.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.