Gulf Of Guniea Chemicals & Resins Limited

Gulf of Guinea Chemicals & Resins Limited (“GGC&R”) is the subsidiary created to market the Methanol derivatives from the Gulf of Guinea Methanol project in Nigeria to the chemical sector of West Africa. Our flagship plant would be a 200MTPD Formaldehyde plant that would be utilized as feedstock for Urea Formaldehyde Concentrate (UFC-85) production to also be situated in the Ibom Industrial City (IIC) in Akwa-Ibom State. There are various existing & proposed Fertilizer plants in Nigeria:

• • Notore Fertilizer & Chemical Industries
• • Indorama Fertilizers proposed in Port Harcourt.
• • Dangote Fertilizers proposed in Lekki, Lagos
• • Brass Fertilizer proposed in Bayelsa

Total contribution of all firm capacity of 4.37 MMTPA of Granular Urea in the near future and would consume 110 MTPD of UFC. Other fertilizer projects under consideration are by Nagarjuna Group and capacity expansion of Notore Chemicals, which can potentially add 10.51 MMTPA of Granular Urea on long run.

These fertilizer projects under consideration may require another 265 MTPD of UFC. We would be establishing dialogue with project proponents of on-going fertilizer projects to understand their need, project timeline and their willingness for entering into long term contract for UFC supplies and to get supply commitments through long term off-take contracts (at least covering the period of debt repayment).

Presently, there are no plans by any domestic fertilizer producer to set up UFC Plant in Nigeria and the likely import supplies are from Saudi Arabia, Oman and Egypt, who are operating similar UFC plants. However, the add-on transportation cost for such import will be in the range of 75-100 USD per MT as minimum so the domestic production will therefore have definitive cost advantage over imports.

Also, after production commences, the FGN would not give waivers or CBN rates for the imports of UFC because of local production. It is therefore proposed to install a 125 MTPD of UFC-85 plant in to cater the existing needs of the Nigerian Fertilizer market.

Anshula Technological Engineering Consultants (ATEC) are about to sign an agreement with the Gulf of Guinea Chemical & Resins Limited for the “Techno – Economic Feasibility Report (TEFR)” for grass root Petrochemicals Complex including and “Detailed Project Report” (DPR) for a “Formaldehyde / Derivatives” Complex including Aqueous Formaldehyde (AF 37) / Urea Formaldehyde Concentrate (UFCC – 85) / Hexa Methylene Tetra Amine / Paraformaldehyde / UFC, MF, PF Amino Resins / Sulphonated Naphthalene Formaldehyde (SNF) etc.

This is in conjunction with the Federal Ministry of Science & Technology