Oil & Gas

Nigeria is advancing its methanol production sector as part of its commitment to achieving carbon neutrality by 2060. The African Finance Corporation (AFC) has secured funding to support Black Rose in constructing a new methanol plant in Akwa Ibom, Nigeria.

This project aligns with the government’s environmental goals, as confirmed by details shared by the Washington-based Specialty Energy Platform. The collaboration between the AFC and the International Finance Corporation (IFC) has been pivotal in reducing project risks and bringing it closer to financial closure.

Methanol production in the Middle East and Africa is poised for substantial growth, with global methanol output expected to reach 127.5 million tons by 2025, according to World Metrics. Black Cruise’s initiative, a key player in Nigeria's methanol drive, plans to eliminate natural gas flaring and produce 1.8 million tons of methanol annually in its first phase.

AFC CEO Samayala Zubero emphasized the strategic importance of this project, highlighting its role in supporting carbon neutrality initiatives while also adding manufacturing value and generating local employment.

The second phase of the project will see Black Cruise expand its methanol production capacity to 1.9 million tons annually, incorporating ammonia production to support fertilizer manufacturing. This expansion is expected to create 2,500 jobs during construction and an additional 16,000 operational jobs, contributing to Nigeria's economic diversification.

The total cost of the plant is estimated at $1.6 billion, according to the UK’s special legal adviser to AFC, Olaniwun Ajayi.

Nigeria's methanol ambitions are further supported by the Brass Fertilizer & Petrochemical Company’s project in Bayelsa, which aims to produce 3.5 million tons annually, starting in 2024. This plant will use natural gas to manufacture methanol, urea, and ammonia, meeting both local and regional demand.

As global natural gas methanol production accounted for over 90% of total production in 2020, the market is projected to grow at an annual rate of 5.3% through 2027, strengthening Nigeria's position in the global methanol industry.