Indorama Eleme Fertilizer & Chemicals ltd

Print

The Indorama Group, through a new established subsidiary “Indorama Eleme Fertilizer & Chemicals Limited” (“IEFCL” or “Project”), is setting up a Fertilizer Complex within the current site of its already existing petrochemicals activities in Eleme, Nigeria. The aim is to transform natural gas into fertilizer, a value added product. The plant will consist of the following production units: a 2,300 MTPD ammonia plant, and 4,000 MTPD urea production and granulation plant.

The Project will also involve development of outside infrastructure, including:

  • an 84km underground pipeline from a gas supplier’s facilities (AGIP Nigeria Limited) to the Plant, and
  • a new port terminal in nearby Onne Port, to support product exports. (The port terminal will not be financed by BIO; it is managed as a separate project)

The proposed project supports the Nigerian fertilizer industry, which will facilitate development of the agricultural sector and improve food security in the country : the project will dramatically improve access to fertilizers which are mostly imported today. By increasing availability and developing efficient distribution channels, demand is expected to grow in the coming years, with a positive impact on crop yields and hence, food prices. Last, the Project is in line with the Nigerian Government’s initiative to meet local demand by building domestic capacity and thereby, utilize the abundant gas reserves available within the country.

The Project directly supports the Nigerian Government’s strategy to achieve food self-sufficiency and food security, generation of gainful rural employment, increased production of raw materials for industries, increased production and processing of export crops.

Furthermore, the project directly supports the Nigerian Government’s initiative to eliminate the importation of Urea and to meet local demand to build its own capacity and thereby utilize the abundant gas reserves available within the country (anti-flaring policy and gas monetization initiative). The project provides stabilization to their fertilizer market with a positive effect on food prices while contributing to overall country exports and GDP. The number of manufacturing industries being able to compete on the international export markets is very limited.

Website: www.indoramaeleme.com

  • Investment amount (€):

    USD 15 million

  • Contract signature :

    2013

  • Nature of intervention :

    Senior Corporate Loan

  • Development impacts :

    • 1 — Direct and indirect job creation
    • 2 — Improve access to fertilizers with positive effect on crop yields and food prices
    • 3 — Replace import by locally produced goods
    • 4 — Generate revenues by export