A $3.5bn petrochemical plant is planned for Bonny, Rivers State, following the signing of a memorandum of understanding between the project promoters, a Chinese engineering company and a local landowner in Port Harcourt.

The proposed facility will occupy 500 hectares of land owned by Sene Kalada, a traditional house chief in Bonny.

The agreement was signed by Frank Okafor, representing Best Option Chemical Limited; Lee Edwards of China National Chemical Engineering Company (CNCEC); and Kalada. The Director-General of the Rivers State Investment Promotion Agency, Chamberlain Peterside, facilitated and witnessed the signing.

Under the proposed arrangement, CNCEC is expected to provide 80 per cent of the project financing, while other partners will contribute the balance through land and other investments.

Okafor said Best Option Chemical Limited, a subsidiary of Spain-based Best Option Petro-Meto, would coordinate engagement with regulatory authorities, including the Nigerian National Petroleum Company Limited, and host communities. CNCEC is expected to serve as the project’s financial partner.

The promoters said feasibility studies had been completed and construction could begin within nine months. The plant is expected to produce methanol and other petrochemical products for Nigeria’s domestic market and for export.

The investment is expected to create jobs during construction and operations, while expanding Rivers State’s petrochemical industry, which already includes Indorama’s facilities in Eleme.