Investments in Indorama Eleme Petrochemicals to hit $3.7bn in 2017
Total investment in Indorama-run Eleme Petrochemicals Company near Port Harcourt, Rivers State, is expected to hit $3.7 billion in the next four years.
Top officials of the company revealed this when a Federal Government delegation visited the company, according to the company's quarterly journal.
This is as construction work on the $1.2 billion fertiliser plant expected to be the largest urea plant in the world is now at piling stage.
Apart from about $600 million spent to buy off 65 percent ownership of the moribund Eleme Petrochemicals Company from the Federal Government and the carrying out of turn-around maintenance (TAM), Indorama has pumped more billions of dollars to expand the company and build a world class petrochemicals complex in Eleme. Apart from the fertiliser plant under construction, there is over $800 million methanol plant and $200 million low density poly-ethylene (LDPE) plant.
The $3.7 billion target has already been acknowledged by the Federal Government officials who have also expressed gratitude to Indorama for helping Nigeria to build up such huge financial asset base aside the revival of the Eleme Petrochemicals.
The Federal Government's response was communicated by the director of gas in the Federal Ministry of Petroleum Resources, K. Zaji, who inspected the company.
Zaji had said the team came to Indorama Eleme at the instance of the minister and the permanent secretary. He had listened to a presentation by Praveen Jain, head of commercial, which detailed Indorama's successes and its unfolding investments aimed at making Nigeria the largest petrochemicals hub in Africa. He went on a tour of some operational areas of the IEPL complex.
He was told that by 2017, Indorama's investments in Nigeria targeted at revamping the Eleme Petrochemicals, building a port terminal, fertiliser, methanol and PBH/PP/BDR plants would have risen to $3.7 billion.
Zaji said that through Indorama, the abundant gas resources in the Niger Delta would boost the country's economic growth. He added, "Products from raw materials produced by Indorama are everywhere you turn to in this country". He regretted the challenges faced by IEPCL especially that of steady supply of gas, and promised to submit a report to federal authorities for actions so that companies that depend on the IEPCL's products for raw materials would not go down.
Throwing more light on the progress of the fertiliser plant construction which started in May 2013, the managing director, Manish Mundra, represented by Jossy Nkwocha, head of corporate communications/special adviser to the managing director, told co-manufacturers at the 29th annual general meeting (AGM) in Port Harcourt last week that the fertiliser complex would be ready in 2015 and begin production in the first quarter of 2016.
Nkwocha said the fertiliser plant at capacity of 1.4 million tons per year would be the world's largest urea plant. Funds may not be a problem as is always the case with most Nigerian projects as he said, "Success brings financiers, and so, when the company desired to raise $800 million from international financiers to add to the $400 million raised from the equity holders, the IFC (International Finance
Corporation), an arm of the World Bank, rather mopped up $1.8 billion and had to return the surplus. They mobilised funds from Nigeria, Europe, the US, etc".
He assured that raw materials for the fertiliser (Urea) would all come from Nigeria. He said planning and following up was the key in the industry.
Total investment in Indorama-run Eleme Petrochemicals Company near Port Harcourt, Rivers State, is expected to hit $3.7 billion in the next four years.
Top officials of the company revealed this when a Federal Government delegation visited the company, according to the company's quarterly journal.
This is as construction work on the $1.2 billion fertiliser plant expected to be the largest urea plant in the world is now at piling stage.
Apart from about $600 million spent to buy off 65 percent ownership of the moribund Eleme Petrochemicals Company from the Federal Government and the carrying out of turn-around maintenance (TAM), Indorama has pumped more billions of dollars to expand the company and build a world class petrochemicals complex in Eleme. Apart from the fertiliser plant under construction, there is over $800 million methanol plant and $200 million low density poly-ethylene (LDPE) plant.
The $3.7 billion target has already been acknowledged by the Federal Government officials who have also expressed gratitude to Indorama for helping Nigeria to build up such huge financial asset base aside the revival of the Eleme Petrochemicals.
The Federal Government's response was communicated by the director of gas in the Federal Ministry of Petroleum Resources, K. Zaji, who inspected the company.
Zaji had said the team came to Indorama Eleme at the instance of the minister and the permanent secretary. He had listened to a presentation by Praveen Jain, head of commercial, which detailed Indorama's successes and its unfolding investments aimed at making Nigeria the largest petrochemicals hub in Africa. He went on a tour of some operational areas of the IEPL complex.
He was told that by 2017, Indorama's investments in Nigeria targeted at revamping the Eleme Petrochemicals, building a port terminal, fertiliser, methanol and PBH/PP/BDR plants would have risen to $3.7 billion.
Zaji said that through Indorama, the abundant gas resources in the Niger Delta would boost the country's economic growth. He added, "Products from raw materials produced by Indorama are everywhere you turn to in this country". He regretted the challenges faced by IEPCL especially that of steady supply of gas, and promised to submit a report to federal authorities for actions so that companies that depend on the IEPCL's products for raw materials would not go down.
Throwing more light on the progress of the fertiliser plant construction which started in May 2013, the managing director, Manish Mundra, represented by Jossy Nkwocha, head of corporate communications/special adviser to the managing director, told co-manufacturers at the 29th annual general meeting (AGM) in Port Harcourt last week that the fertiliser complex would be ready in 2015 and begin production in the first quarter of 2016.
Nkwocha said the fertiliser plant at capacity of 1.4 million tons per year would be the world's largest urea plant. Funds may not be a problem as is always the case with most Nigerian projects as he said, "Success brings financiers, and so, when the company desired to raise $800 million from international financiers to add to the $400 million raised from the equity holders, the IFC (International Finance
Corporation), an arm of the World Bank, rather mopped up $1.8 billion and had to return the surplus. They mobilised funds from Nigeria, Europe, the US, etc".
He assured that raw materials for the fertiliser (Urea) would all come from Nigeria. He said planning and following up was the key in the industry.
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