China to finance $23bn refinery, petrochemical expansion in Nigeria
17 May 2010
Lagos – The Nigerian National Petroleum Corp. ( NNPC) and China State Construction Engineering Corp. Ltd (CSCEC) are to jointly establish three greenfield refineries and a petrochemicals complex at various locations in Nigeria.
Under a memorandum of understanding, the partners are to seek an estimated $23bn in contractor financing and supplier credits from the China Export & Credit Insurance Corp., SINOSURE, and a consortium of Chinese Banks.
NNPC said it aims to stem the flood of imported refined products into Nigeria, currently estimated at $10bn per annum, while Chinese partner CSCEC wants to expand its presence in Africa and establish its footprint firmly in the Nigerian Oil & Gas landscape.
The three new refineries are expected to add some 750,000 barrels per day capacity to Nigeria’s refining infrastructure and position NNPC to engage in international trading of refined petroleum products. The proposed petrochemical complex, meanwhile, will source natural gas from the Nigerian Gas Master Plan to produce polymers, solvents and particularly, gas based fertilizers.
“The new refineries will reinforce the ongoing oil & gas reforms in Nigeria which, are primarily symbolized by the Petroleum Industry Bill which will soon be passed into law and the imminent deregulation of the downstream sector of Nigeria’s petroleum Industry,” said NNPC.
