State-owned Nigerian National Petroleum Company (NNPC) Ltd has entered into a $7 billion gas supply agreement with Indorama Eleme Petrochemicals Ltd, the biggest producer of olefins and polyolefin plastics in West Africa.

The county seeks to leverage its 209 trillion cubic feet of gas reserves to power its economy.

The importance of tapping into the country’s dormant gas resources, given the global recognition of gas as a crucial transitional fuel, The Guardian newspaper reported, citing NNPC Group CEO Mele Kyari.

He said that over 80% of Nigeria’s power plants rely on gas, with the need to ensure a stable gas supply to sustain industrial activities.

The partnership with Indorama represents a pivotal step towards harnessing the country’s gas resources, Kyari said, adding the collaboration will unlock upstream assets for gas production and establish essential infrastructure for industries, including urea and fertilizer production.

Nigeria-based Indorama Managing Director Manish Mundra stressed the importance of downstream collaboration, emphasising Nigeria’s potential to become a major producer of urea and methanol on a global scale.

He disclosed plans for investment in additional fertilizer lines, two Methanol production lines, and a substantial petrochemical project.

As part of the agreement, 800 million cubic feet of gas will be made available for domestic use, the report said.

(Editing by Seban Scaria