Nigeria plans to create a $20bn, a 27-square-kilometre industrial park in the Niger delta region for a batch of new chemical plants that use Nigeria’s abundant natural gas as a feedstock. The government expects that the project will create up to 250,000 jobs, but there are concerns that violence in the region will disrupt the project. The Gas Revolution Industrial Park, or “GRIP”, is to be located in Ogidigben Delta State in the southeast of the country. Close by are more than 18 trillion cubic feet of gas reserves ensuring a low-cost supply of both feedstock for petrochemical manufacturing, and of energy. The location will combine refineries, petrochemical works and fertilizer factories, as well as other electricity-hungry industry such as aluminium smelting. The area is also served by a deep-water port, centralized utilities, and services such as uninterrupted power, world-class telecoms and abundant water. The project would be financed as a public–private partnership, and that a consortium of Asian and Middle Eastern companies had already formed to take on a build, operate, transfer role. Such companies are understood to include GS E&C of South Korea, the China Development Bank, Power China and the Arabian Gulf Mechanical Centre. Firms setting up production plants are being offered with tax breaks and regulatory waivers.
Image source: PennEnergy