AFRICANGLOBE – Nigerian conglomerate Honeywell Group has entered into an agreement with the United States Trade and Development Agency (USTDA) to jointly fund a study for the development of a world-class gas-based industrial complex.
Following the initiative, a world-scale petrochemicals industrial complex would be constructed, the company says. The project which could gulp funds in excess of $3 billion in capital costs is also expected to create jobs and encourage further economic growth in Nigeria.
“The Honeywell Group welcomes the opportunity to partner with the USTDA to fund a study to assess opportunities in the petrochemicals sector. The Group’s plan to move into this sector is premised on our strong track record of building successful and sustainable Nigerian businesses that are known for their excellence and best practices,” said Dr Teddy Ngu, Head, Corporate Development & Investments of Honeywell Group, who signed the agreement on behalf of the company.
He noted that Nigeria remains home to Africa’s largest proven gas reserves and 9th largest in the world, but sadly the natural resource has been underutilised. However, the period of gas wastage is almost over, according to Ngu, who stated Honeywell’s readiness “to effectively utilise Nigeria’s significant gas resource and contribute to efforts to position Nigeria as the regional hub for gas-based industries.”
Ndu described the indigenous conglomerate’s partnership with USTDA as strategic, as it would afford it the opportunity of technology transfer from the US, as well as funds from American lenders and potential partners, having proven to be a reputable Nigerian project sponsor.
The deal was signed on behalf of USTDA by Maria E. Brewer, Deputy Head of Mission, Embassy of the United States of America.
The project, which is in line with Nigeria’s gas transformation agenda, is expected to among other things reduce unemployment in the country, as it has the potential to create direct and indirect jobs, especially in the areas of construction and operation.
By: Niyi Aderibigbe