The Limbe Chemical Fertilizer Plant once operational will greatly boost yields in the country.

 A German company, Ferrostaal GmbH, the National Hydrocarbons Corporation (NHC) and EurOil Ltd Company have reached an agreement for the sale of natural gas to the chemical fertilizer plant to be constructed in Limbe , Fako Division of the South West Region of Cameroon. The Executive General Manager of NHC, Adolphe Moudiki, the Chief Executive Officer of Ferrostaal GmbH, Klaus Lesker, the Senior Executive Manager Petrochemical Industry of Ferrostaal GmbH, Frantz Henry Liburd, and the President of EurOil Ltd Company, Cameroon’s subsidiary of Scottish company Bowleven, Chief Tabetando, signed the term sheets at the head office of NHC yesterday May 22, 2013. This was in the presence of the German Chancellor’s Personal Representative for Africa, in the Federal Ministry for Economic Cooperation and Development, Gunter Nooke and the German Ambassador to Cameroon, Klaus-Ludwig Keferstein.

Under the term sheets, the three companies agreed on the conditions for the supply of natural gas, and notably the price of gas, which will be in line with the price of urea in the international market, following a formula agreed by the parties.  Both parties equally agreed on the period for the supply of gas from the Isongo gas field (Etinde permit) to the chemical fertilizer plant. In a press release, the parties noted that following the recent discovery of additional gas resources in the Etinde permit, the supply period shall extend well beyond the ten years previously considered for the execution of the project in the Memorandum of Understanding signed on April 24, 2012. The three companies were unanimous that the signing of the term sheets marks a major step in the development of the important project, which they said, aims to support the agricultural revolution initiated by the Head of State, Paul Biya, within the framework of his “Greater Accomplishments Policy.”

Talking to the press after the ceremony, the Senior Executive Manager Petrochemical Industry of Ferrostaal GmbH, Frantz Henry Liburd, said, “We are happy to have signed the term sheets which is an important milestone in the project and we are looking forward to implementing the project. We will meet from next week to find the best way to implement the project.” To Chief Tabetando, the project represents a significant boost for sustainable socio-economic development in Cameroon. “Fertilizer has so many uses and the term sheets which we have signed is principally for processing the gas into fertilizer so as to enhance agriculture. Secondly, it will create jobs; give opportunity for other businesses upshot in the area, build new structures for those who will be displaced from the site and more facilities will come there, revenue is going to come into the country and this will change the peoples’ lifestyle,” he said.