GGOEX to construct $700m Nigerian methanol plant


Gulf of Guinea Oil Exploration (GGOEX) is planning to construct a $700m methanol plant at the Gas Industrial Park in Delta State, Nigeria, in 2015 to produce 850,000mtpa of methanol.

"The plant will be financed by International Financial Corporation on debt-equity basis and fund syndication from local banks."

GGOEX has also selected the Mitsubishi Methanol Process (MMP) as the process technology for the plant.

The proposed plant will produce 2,500mtpd of federal grade AA methanol, which is used to produce acetic acid, MTBE, formaldehyde and other products for the chemical and petrochemical industries.

The new plant, which is expected to come on stream in 2015, will be the first commercial-scale installation of the MMP process in methanol production technologies in West Africa.

The plant will be financed by International Financial Corporation on debt-equity basis and fund syndication from local banks.

GGOEX is presently processing a due diligence assessment with the Nigerian Gas Aggregation Company and also holding discussions with the Federal Government of Nigeria.

The project is expected to increase the monetisation of Nigeria's gas potentials and also develop midstream industries using gas resources.

Project co-coordinator Emmanuel Ejemurua was quoted by Business Day as saying that: "The Delta Methanol Plant is ideally located to supply its major export markets in Europe and expectations are high that it will produce a competitive product, bring added value to society and further contribute to industrial growth in Nigeria."