NIGERIA CONSTRUCTS FIRST-EVER METHANOL GAS PLANT

NIGERIA CONSTRUCTS FIRST-EVER METHANOL GAS PLANT

NIGERIA CONSTRUCTS FIRST-EVER METHANOL GAS PLANT
 
Adedayo Osho, Field Editor
 
02/02/2021, Abuja
 
After many years of importation of methanol, the Federal Government of Nigeria, through the Nigerian National Petroleum Corporation (NNPC) and its partners, has finalized agreement on the construction of a methanol-processing plant in the Niger Delta region. The $3.6 billion (3.6 billion dollar) project is the first of its kind in Nigeria.
 
Methanol is produced mainly through a two-step catalytic chemical process. Catalytic reforming is the first stream during which natural gas is converted to synthesis gas. In the second step, synthesis gas is converted to methanol. A number of other feedstocks, such as coal, biomass and municipal waste, could also be converted to synthesis gas for further conversion to methanol, and are used in several regions based on their availability and cost. 
 
A collaborative venture spearheaded by NNPC, the Nigerian Local Content Management Board and DSV Engineering Limited, the plant will process approximately 14 trillion cubic feet of gas from oil fields around the Niger Delta Brass area, while Shell provides the needed gas feedstock.
 
"This project signifies the Federal Government’s effort to maximize value and monetize Nigerian vast natural gas endowment," said Timipre Sylva, Nigerian Minister of State for Petroleum Resources. 
 
He added that "The project will have significant economic and development impact on the country, including revenue generation and import substitution for the methanol needs of the country that is currently 100% imported."
 
Creating 30,000 jobs during the construction phase, the project has the potential to create over 5,000 permanent jobs upon completion. It is expected to be completed by 2024.
 
NNPC forecasted domestic demand for natural gas will rise from 1.5 billion cubic feet per day (Bcf/d) to 7.4 Bcf/d by 2027, propelling Nigeria to boost gas monetization and production.