Investment opportunities in the Oil Industry and Natural Gas is available in Imo State in large and commercial quantities and offers inherent opportunities for would be investors in gas production, transmission and distribution.
Interested investors can apply through ISIPA to the Ministry of Petroleum Resources for appropriate licenses to prospect for and produce natural gas. This is a highly capital intensive business and local investors can establish joint venture arrangements with foreign partners to finance such business. The Nigerian Gas Company has almost a “defacto” monopoly in gas transmission but it is open to joint venture proposals from third parties for specific project.
Investors are encouraged to either independently own and operate natural gas distribution system or go into venture arrangements. These distribution companies would purchase gas from Nigeria Gas Company (NGC) at designed “city gates” and distribute same through pipelines to domestic, Commercial and industrial users within certain area. The opportunities here would include the distribution of gas as compressed natural gas (CNG), using tankers or tube traclers to consumers who may not be within the proximity of existing gas facilities.
There are also opportunities in downstream gas business. This area of the gas business could be categorized as follows:-
Many Chemical processes use natural gas as feedstock (e.g. ammonia and methanol). Entrepreneurs are most welcomed to invest in such gas related project, whether for local market or for export.
NGL extraction Plants could be set up in Imo State to recover natural gas liquids from major gas supply schemes. These liquids which are rich in heavier hydrocarbons have high market values and they could be exported in their raw forms, used as feedstock for production of chemicals or fractionated into LPG, gasoline and various special boiling solvents. It is estimated that investment in Natural Gas Liquids.
The qualities of natural gas make it a prime choice for industrial and commercial processes. This provides an excellent opportunity for investors to actively participate in the marketing of specific gas fired equipment (e.g. gas burners, boiler packages, kiln, ovens, dryers, etc.) and in the establishment of engineering re-design/modification of existing liquid gas fired equipment in Nigeria.
Gas distribution entails the use of thousands of kilometers of mostly polyethylene (PE) pipes. The opportunities here include the establishment of new facilities for PVC pipe manufacture or investment in joint venture arrangements with existing pipe manufacturers.
When the use of CNG as an automobile fuel become commercialized, there will be opportunities to invest in CNG filling stations, conversion workshops and retails outlets to sell CNG conversion kits.
The state has over 163 oil wells at 12 different locations. The existing flow stations are as follows: Addax and Chevron have joint flow station at Izombe while Shell Petroleum Development Company and Nigeria Agip Oil Company Ltd have their flow station at Egbema and Akiri respectively. There are more than 163 wells currently in the state, though more wells are being drilled in the state.
• Crude Oil prospecting/exploration and production
• Establishment of oil Refineries
• Establishment of Petrochemical industries
• Establishment of Mid-Stream Gas Plants
• Investments in Independent Power Plant for utilization of abundant, associated and non-associated gas in the State, which are being currently flared
• Maintenance of sustainable environment
• Establishment of fertilizer urea plant