Numerous Nigerian media have been reporting about a USD 16 bn large-scale petrochemical project planned in the country’s Delta region. Looking towards Saudi Arabia, the complex’s planners intend to capture the gases – mainly “light feed” ethane – released during oil production and use them for generate energy and petrochemical feedstocks, rather than burn it off, as was customary until now.

A consortium comprised of representatives from the Nigerian government, local business group and internationals like Shell, Chevron and Saudi Arabian project developer Xenel (www.xenel.com) has been tasked with building the complex, which will boast capacity for 1.3m t/y of PE and PP. In addition, the hub will also turn out fertiliser, which apparently has already piqued the interest of several Indian players.

A conference held at the end of July 2011 brought to one table every possible project participant. As of today, it remains unclear when the project will be finished, although it is safe to assume that Nigeria will do its utmost in the coming years to emulate the example of the Arab oil producing states to develop and expand its local petrochemical and polymer production. "We have done this in Saudi Arabia in the 1970s and early 1980s so nobody can tell me that we cannot do the same in Delta State," Xenel representative Matouq Jannah was quoted as saying.