|FOR IMMEDIATE RELEASE
March 20, 2014
Anna Humphrey | (703) 875-4357
USTDA SUPPORTS NEW PETROCHEMICAL PRODUCTION IN NIGERIA
|Partners with Honeywell Group of Nigeria to Diversify Petrochemical Industry|
WASHINGTON, DC – Today, the U.S. Trade and Development Agency awarded a grant to Honeywell Group Limited (Lagos, Nigeria) for a project that will assess different product streams for fertilizer and petrochemical facilities in Nigeria. The feasibility study will include an analysis of alternative petrochemical facilities including methanol, fertilizer chemicals and petrochemicals that could produce ethylene, propylene, or benzene products. The study will recommend which of these facilities should be included in the proposed gas-based industrial complex, the size and scale of the facilities, the sources of feedstock and the optimum location for the various options. In addition, the study will assess the domestic and international markets for the output of the facilities, as well as the capital costs required, which could exceed $3 billion.
The $257,000 grant agreement was signed by the Deputy Chief of Mission Maria Brewer on behalf of USTDA, and by Dr. Teddy Ngu on behalf of Honeywell Group. In addition to USTDA's contribution under the grant agreement, Honeywell Group will contribute $257,000 toward the completion of the study, for a total project cost of $514,000.
During the signing ceremony, Dr. Ngu stated, "The Honeywell Group strongly welcomes the opportunity to partner with USTDA in funding a study to assess opportunities in the petrochemicals sector. The Group's plan to move into this industrial sector is premised on our strong track record of building successful and sustainable Nigerian businesses. In addition, Government policies are increasingly focused on opportunities that effectively utilise the Country's gas resources. We believe our initiative will lead to an attractive and executable project which will stimulate employment and economic growth throughout Nigeria. This partnership will help kickstart our initiative and we look forward to continuing to work with USTDA to achieve our goal of developing a world-class gas-based industrial complex."
The feasibility study will assist Honeywell Group in helping to realize Nigeria's potential within the petrochemical market. Nigeria is the twelfth largest producer of petroleum and possesses the seventh largest natural gas reserves in the world. However, according to The World Bank, Nigeria is second only to Russia in the volume of gas flared, and its gas reserves are mostly unutilized.
The opportunity to conduct the USTDA-funded feasibility study will be competed on the Federal Business Opportunities (FBO) website. A link to the FBO announcements will be posted to USTDA's website at www.ustda.gov. Interested U.S. firms should submit proposals according to the instructions in the FBO announcements.
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The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project planning activities, pilot projects, and reverse trade missions while creating sustainable infrastructure and economic growth in partner countries.
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