State owned Nigerian National Petroleum Corp. has let major contracts for its proposed $1 billion Eleme petrochemical complex in Rivers state, Nigeria.
In planning since 1974, the project has been dogged by financing problems and doubts about economic feasibility.
Production is to start up in 1993.
Nigeria's minister of petroleum resources, Jibril Aminu, said that the project had to cross some major hurdles in terms of feedstock supply, demonstrating project viability to the international community, and negotiating foreign financing.
CONTRACTS
Chiyoda Corp. will construct an olefins plant to produce 300,000 metric tons/year of ethylene and 90,000 tons/year of propylene and provide utilities and offsites.
Kobe Steel will build a 250,000 ton/year polyethylene/butene 1 complex.
Tecnimont and JGC Corp. will install an 80,000 ton/year polypropylene unit, expandable to 120,000 tons/year.
Spie Batignolles will provide infrastructure and site development.
FEEDSTOCK DEAL
NNPC negotiated a feedstock supply agreement for natural gas liquids with its joint venture partners Agip SpA and Phillips Petroleum Co. NGL will be supplied by pipeline from Obrikom, 50 miles away.
In addition, export agreement for finished products has been reached with Dupont of Canada for 150,000 tons/year of polyethylene and Techint International for 40,000 tons/year of polypropylene.
Foster Wheeler International Corp., Reading, England, project management consultant to NNPC since 1974, said it will continue to assist NNPC unit Eleme Petrochemicals Co. Ltd. in managing the current contracts.
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