Rivers State is set to host a proposed $3.5 billion methanol and fertiliser plant in Bonny Local Government Area following the signing of a Memorandum of Understanding (MoU) involving Best Options Chemical Ltd, China National Chemical Engineering Group Corporation (CNCECC) and community stakeholders.
The Rivers State Investment Promotion Agency (RSIPA), which facilitated the agreement, said Bonny was selected because of its access to natural gas and proximity to the ocean.
RSIPA Director-General, Dr Chamberlain Peterside, clarified that the state government has no direct equity stake in the project, stressing that the MoU does not constitute a final investment decision.
Chief Executive Officer of Best Options Chemical Ltd, Frank Okafor, said CNCECC is expected to provide 80 per cent of the estimated investment, amounting to $2.8 billion, while other funding arrangements would cover the balance.
A CNCECC director, Edward Li Guosong, said Rivers State’s oil and gas resources informed the company’s interest in the project.
The project proponents also disclosed that 500 hectares of land had reportedly been provided for the proposed facility by Lawrence Oloche Emmanuel, Chairman of Promise Land Integrated Farm Settlements, and SENEC Canada.
Although work could begin within six to nine months, the project remains subject to financing arrangements, regulatory approvals and other outstanding requirements.
When operational, the facility is expected to create jobs, boost local businesses and expand opportunities in engineering, transportation and other support services.
