Nigeria to export fertilisers as Notore revs up plan for new plant

Nigeria’s ambition to become a net export of fertilisers has received a fillip with the planned expansion by Notore Chemical Industries, the country’s leading integrated fertiliser, agro-allied, petrochemical and power producer.

The company has made significant progress in negotiations with Mitsubishi Corporation of Japan and other international investors for the construction of a new plant at its Onne, Rivers state, facility.

Nigeria imported fertilisers worth $226.43 million in 2017, according to the United Nations COMTRADE database on international trade.

With demand for fertilisers in Africa is projected to rise, Notore’s planned expansion will add a second train to its existing plant to triple its capacity.

Onajite Okoloko, Notore’s group managing director and CEO, confirmed the expansion plan.

“Discussions are progressing with Mitsubishi and other investors while preliminary studies have started for Train 2 which will co-produce 1,000,000MTPA of fertiliser per annum and half a million metric tonnes of methanol annually at Notore’s certified brownfield site,” he said.

“This together with its existing plant is expected to achieve an aggregate increase in Notore’s fertiliser production capacity from 500,000MTPA to approximately 1,500,000MTPA of fertilizer and also introduce 500,000MTPA of other petrochemicals.

“So we see a good future for Notore, with more fertilizer that will be sold to the domestic market and some for export.”

Notore’s gas supply agreement with Eroton Exploration and Production Company Limited, a Nigerian oil and gas producer, has given it the confidence to proceed with the second train, he said.

Eroton, operators of OML 18, a prolific oil and gas acreage with proven gas reserves of 5 trillion standard cubic feet.

The two companies are just 14 kilometers apart.

“With the gas security that we have in place through Eroton, we already have a strong competitive edge in fertiliser production, so we also want to leverage on this gas availability by adding a second train in Onne,” Okoloko said.

He said the new plant was in sync with the federal government’s diversification policy and “will create thousands of jobs and boost foreign exchange earnings”.

“We will give a figure on the construction cost of the new plant once we have concluded talks and signed an agreement on a final investment decision (FID), but what is important now is the prospect for the new jobs that will be created from this and foreign exchange earnings,” he said.

He said fertiliser exports would be enhanced by the company’s ownership of 2km of waterfront, including the Notore Port and a dedicated jetty.

The jetty can currently accommodate vessels with a maximum volume of 15,000MT.

It is being dredged to accommodate 30,000MT vessels.

“Direct port status through ownership of the Notore Port gives the group access to the Atlantic Ocean for easy import of raw materials and export of our products to the rest of the world, as well as a more cost-effective operation, which is a strong competitive advantage,” Okololo added.

Notore acquired the assets of the former National Fertilizer Company of Nigeria (NAFCON) from the federal government in 2006 and is one of the poster boys of the success of Nigeria’s privatisation programme.