The Honeywell Group and the United States Trade and Development Agency (USTDA) today, 20th of March 2014, signed a partnership agreement to jointly fund a study towards the development of a world-class gas-based industrial complex. Maria E. Brewer, Deputy Head of Mission, Embassy of the United States of America, signed on behalf of USTDA while Dr. Teddy Ngu, Head, Corporate Development & Investments of Honeywell Group signed on behalf of Honeywell at a short ceremony held at the residence of the US Consul General in Lagos.

The initiative, which could exceed $3 billion in capital costs when completed, will lead to the construction of a world-scale petrochemicals industrial complex. The project is also expected to create significant employment opportunities and contribute to Nigeria’s economic growth especially through import substitution.

According to Dr. Teddy Ngu, “the Honeywell Group welcomes the opportunity to partner with the USTDA to fund a study to assess opportunities in the petrochemicals sector. The Group’s plan to move into this sector is premised on our strong track record of building successful and sustainable Nigerian businesses that are known for their excellence and best practices.”

Commenting on the project’s use of gas as the key feedstock, Dr. Ngu noted that Nigeria holds the largest proven gas reserves in Africa and is the 9th largest holder of gas in the world but has in the past underutilised this gas resource. He said, “the Honeywell Group is well positioned to effectively utilise Nigeria’s significant gas resource and contribute to efforts to position Nigeria as the regional hub for gas-based industries.”

Dr. Ngu added that the initiative is in line with the Federal Government of Nigeria’s gas transformation agenda. “An aspect of this initiative worth highlighting is the potential creation of thousands of jobs during the construction and operation of the complex. In addition, further indirect employment and wealth would be created along the value chain.”

Concerning the involvment of USTDA, Dr. Ngu said the collaboration provides the Honeywell Group tangible support from the US Government. According to him, “this partnership will help to favourably position the project before American technology/service providers, lenders and potential partners. Through our engagement with USTDA, we have shown ourselves to be a reputable Nigerian project sponsor and well equipped to drive this project to a successful fruition. We look forward to continuing to work with USTDA to acheive our goal of developing a world-class gas-based industrial complex”.