NIGERIA - Proposals.

For years Nigerian planners have been promoting new projects in the petrochemical sector. Apart from those under Phase Three, ventures envisaged since the early 1990s have included methanol and MTBE plants.

Many companies had expressed an interest in petrochemical ventures, including ExxonMobil, Shell, Chevron, Methanex and Penspen. One project considered in 1992 was to build a $400m export-oriented methanol plant using gas produced by Chevron.

The plant, with a capacity of 2,000-2,500 tons/day, was to be a JV between NNPC, Penspen, and Mannesmann of Germany, with Chevron invited to have a stake as well. At the time, it was said that ICI had guaranteed purchase of the methanol for at least 10 years after production start-up, which was planned to begin in 1995. The project did not materialise, however.

Mobil Producing Nigeria (MPN), the second biggest oil producer in Nigeria by installed capacity, had since 1993 discussed a plan to have a methanol complex built near its gas plant on Bonny island with a capacity of 900,000 t/y. This was to be part of the second phase of its development of the Oso gas/condensate field in Eket, east of Port Harcourt (see gmt6NigrFieldsAug10-09).

Other projects envisaged by ExxonMobil were an MTBE plant and an ammonia/urea complex. Proposals for these ventures, based on consultancy work done by Mobil Corp, were presented to the military government in 1993.

The ammonia/urea project continued to figure in ExxonMobil's list of possible ventures in Nigeria in recent years. ExxonMobil had no doubt about the potential for petrochemicals demand in Nigeria, with a population expected to exceed 238m in 2025 and plenty of cheap gas to provide the feedstock. But it had major concerns about non-commercial risks and lack of incentives.

Resins: There are synthetic resin plants in Nigeria run by the private sector. They produce non-mouldable resins, especially polyvinyl acetate and alkyd resins for paints, adhesives, lacquer, glues and varnish industries. The main producers of these resins are NYCIL, Niger Chemicals Co., Nigerian Hoechst Ltd. and Chemlap Nigeria Ltd. These companies are all located in the southern part of the country which has been badly affected by unrest since 2003.

Nigeria used to import much of its polymer resin requirements. These included PP - with Phase One production capacities unable to meet demand - polyvinyl chloride (PVC), LDPE, HDPE, high impact polystyrene and general purpose polystyrene. But with the completion of Phase Two, in theory, its needs for PP, LDPE and HDPE were to be met by local production.

Local demand for petrochemicals has grown rapidly since the mid-1980s, both for household and industrial use. The largest consumers are the construction, automobile, furniture, engineering, electrical and agriculture and food industries. PP is used for a wide range of requirements, from plastic bags, sacks and crates to household utensils and automotive parts. A LAB plant depending on the Kaduna refinery used to provide base materials for detergent manufacturers such as Paterson Zochonis and Lever Brothers.

The Aluminium Smelter Co. (Alscon) has a 193,000 t/y plant at Ikot Abasi, on stream since 1997 at the cost of $1.5bn. Alscon is owned 70% by the state, 20% by Ferrostahl of Germany and 10% by Reynolds of the US. It suspended operations in June 1999 as it was unable to raise a $100m capital. Production was resumed in late 1999. But since 1997 the plant has operated well below capacity.

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