21 November 2012, Sweetcrude, Lagos – GULF of Guinea Oil Exploration Limited, GGOEX, is investing N109.02 billion ($700 million) in the establishment of a methanol plant in Nigeria.
The company disclosed, it is currently processing a Due Diligence Assessment with the Gas Aggregation Company of Nigeria, GACN, and is also in discussions with the Federal Government of Nigeria.
The company said that the plant, with a capacity of 850,000 metric tonnes of methanol productions will be the largest in Africa, adding that the company has selected the Mitsubishi Methanol Process, MMP, as process technology for the establishment of the plant.
The company noted that the project will be the first commercial-scale installation of the MMP process in Methanol production technologies in West Africa and would be located at the Gas Industrial park in Delta State.
The company further stated that the cost of the project will be debt-equity financed by the International Financial Corporation, IFC, and fund syndication from local banks.
“The ‘Delta Methanol Plant’ has a nameplate capacity of 2,500 metric tons of Federal Grade AA Methanol per day which is a key product for the chemical and petrochemical industry in the production of Acetic Acid (solvents), MTBE (octane enhancer), Formaldehyde (resins, adhesives) and others. The new plant is expected to come online in 2015.
“The project is expected to enhance the monetisation of Nigeria’s huge Gas potentials,” the company stated.
Engineer Emmanuel Ejemurua, Project Co-coordinator, disclosed that the objective is to develop, own and operate Nigeria’s first Methanol manufacturing and exporting plant, in accordance with the aspirations of Nigeria’s Gas revolution for the diversification of the country’s economy and development of midstream industries from gas resources.
He also stated that global demand for methanol was growing at around four per cent annually.