Notore Chemical Industries, the new owner of the old NAFCON plant achieved a major project milestone with the signing of a 20 year gas contract with the Nigerian Gas Company, (NGC).

NGC is a subsidiary of the Nigerian National Petroleum Corporation (NNPC) set-up to market and distribute the country’s gas locally. NGC buys gas from oil producing companies and then sells to its consumers.

Under Notore’s 20 year contract, NGC will supply the company with an Initial 48 MMscf per day, eventually rising to 143 MMscf per day to support Notore’s aggressive expansion programme. The company plans to commence production in March 2007 with the production of 1700 tonnes per day of urea, increasing this to 3500 tonnes per of urea by 2010 under a second project phase.

Notore also plans for a 3rd project phase with the construction of a world Scale plant which will take its urea production capacity up to 6500 tonnes Per day. The contract signed on Friday will cater for phases one and two of Notore’s project plan.

According to Jite Okoloko, a Director in Notore, “We have achieved a major milestone and we are grateful to Engr Chris Ogiemwonyi, MD of NGC and His team for their support in getting us here. Gas is over 90% of the raw material for our product so getting our gas contract in place is fundamental to the project’s continued success.

This is a very strategic project for Nigeria’s future and economy, and indeed for the rest of the region. We are going to help boost the agricultural sector and increase fertiliser use on the continent. Secondly, as a gas utilisation project, we will be reducing gas flaring in line with the president’s proposals to end gas flaring by 2008.”