Following the signing of a memorandum of understanding by Drake Oil Ltd (Lagos, Nigeria) and South Korea-based SK Engineering and Construction Group, a 30,000tpd liquefied petroleum gas (LPG) plant will be one of the energy-based projects to be built in Nigeria. The USD 5.5 billion agreement, covering a number of projects, will see the LPG plant construction begin in Oguta, in Imo State, within the next six to nine months. The overall scheme of energy and gas-to-liquid projects includes a plant larger in size than any of Nigeria’s refineries and will take three to four years to be completed and commissioned. The LPG plant will take an investment of USD 500 million out of the USD 5.5 billion. The location of the two plants in Imo and River states puts them near supplies of available gas feedstocks. Drake received an allocation of 500,000cu/ft of gas from the federal government.
