Years after wasting huge amounts on the importation of methanol, the federal government has disclosed its intention to compete in the global methanol market with a new investment.
The federal government and some private sector investors sealed the Final Investment Decision (FID) on the Brass Fertiliser and Petrochemical Company Limited, expected to turn Nigeria into one of the world’s largest producers of the product.
Sponsored by two federal government agencies, Nigerian National Petroleum Corporate (NNPC) and the Nigerian Content Development and Monitoring Board (NCDMB), as well as a private firm, DVS Engineering Limited, the project is expected to cost about $3.6b and turn out about 10, 000 metric tons of methanol.
Methanol, also referred to as methyl alcohol and derived from natural gas and other sources, is used for industrial purposes. It serves as energy carrier for factories and electricity generation and alternative fuel in the face of the demand for cleaner energy. Globally, the market share of the product, standing at $20.4b in 2020 is projected to hit $26.6b by 2025.
Nigeria’s failure to develop its petrochemical industry, especially methanol, has been regarded as the reason manufacturing companies are importing about 80 per cent of their raw materials worth over $10b.
At the event in Abuja, Minister of State for Petroleum Resources, Timipre Sylva, said the country currently imports 100 per cent of its methanol needs.According to him, the project would halt importation of methanol into the country, creates 30, 000 direct and indirect jobs during construction and about 6,000 permanent jobs, when operational. (Guardian)