Honeywell and USTDA to help Nigeria gas monetization
The US automation and technology company Honeywell Group (Honeywell) and the United States Trade and Development Agency (USTDA) signed an agreement to jointly finance a feasibility study to develop gas-based downstream industries in Nigeria.
With these reserves, Nigeria is ranked on the ninth position in the world while it appears only in 25th position by the production of gas with 1.2 tcf recorded in 2012.
This gap between the production and reserves of natural gas highlight the potential opportunities to increase this production significantly.
With the second crude oil reserves in Africa, Nigeria saw most of the associated gas just being flared as too expensive for gathering, treatment and transportation.
This flared gas represented the equivalent of $18.3 million losses in revenues per day in addition to the carbon footprint impact.
Because of the lack of infrastructures and industries, Nigeria consumes less than 20% of its production.
In addition the production and export of crude oil and LNG plants generate minimum local employment despite a drastic local content regulation.
Honeywell and USTDA plan $3 billion chemical complex
In addition each $billion of capital expenditure invested in the petrochemical sector generates four times more employment than the same $billion spent in exploration and production.
If the development of a petrochemical industry in Nigeria is recognized as a very promising scenario it supposes to find the technology partners to provide the required proprietary licences and the know-how to design build and operate such complex facilities.
After showing that Nigeria is able to support the design, construction and operation of this first petrochemical project, Honeywell and USTDA will go for a world-scale petrochemical complex in order to optimize the local value extracted from the gas production.