The Rivers State Government has signed an agreement with Chinese engineering firm CNCECC and Best Options Chemical Ltd. for a proposed $3.5 billion methanol and fertiliser plant in Bonny Local Government Area.
The memorandum of understanding (MoU) was signed through the Rivers State Investment Promotion Agency (RSIPA), with CNCECC expected to provide 80 per cent of the project’s estimated cost.
Frank Okafor, chief executive officer of Best Options Chemical Ltd., said the Chinese company’s contribution would amount to about $2.8 billion, while the remaining $700 million would come from other funding sources.
The proposed facility will use natural gas to produce methanol and fertiliser. Its promoters say the investment could create jobs, support local businesses, develop skills and boost industrial growth in the state.
RSIPA Executive Director Chamberlain Peterside said Bonny was selected after investors assessed several locations, including the Orashi region, Omoku and Onne.
He said Bonny’s access to natural gas and proximity to the ocean influenced the decision. The agency also facilitated discussions involving government ministries, prospective landowners and host communities.
However, Peterside stressed that the agreement did not mean construction would begin immediately.
He explained that the project still required financing arrangements, regulatory approvals, environmental assessments and other processes before a final investment decision could be reached.
Nigeria relies heavily on imported methanol because domestic production remains limited. The proposed plant could help expand local chemical manufacturing, although its eventual impact will depend on whether the project secures the necessary funding and progresses to commercial production.
Edward Li Guosong, a CNCECC director, said Rivers State’s oil and gas resources were among the factors that attracted the company to the investment.
The state government said its role was to facilitate the investment rather than hold a direct equity stake in the project.
