FG Pens $3.3bn Gas Agreement for Methanol Plant
The Federal Government, through the Nigerian National Petroleum Company Limited, has signed a $3.3bn agreement to begin sale of gas to the methanol-manufacturing project of the Brass Fertilizer & Petrochemical Company Ltd.
The Minister of State for Petroleum Resources, Ekperikpe Ekpo, described the signing as a “significant milestone.”
Nine years after the project was first announced, the gas sales-and-purchase agreement was finally signed with Shell, TotalEnergies and Agip on Friday in Abuja.
In his speech at the signing ceremony held at the Ministry headquarters, the Minister added that the agreement will boost “ongoing efforts to monetise Nigeria’s vast gas reserves.”
“This signing ceremony is a significant milestone in the development of the US$3.3 billion Brass Methanol Project, it is one more step in the journey to making the project a reality, and I urge all parties to continue in the same steadfastness that has enabled us to surmount all previous hurdles,” the minister said.
The Minister alos hoped that the project will “bring in much-needed Foreign Direct Investment and create thousands of jobs for our teeming population while changing the face and fortunes of the host state and community for good.”
While lauding stakeholders for their perseverance throughout the pre-agreement period, he stressed that the swift construction of the project must now take center stage.
“The project is expected to generate more than $1.5bn annually from exports of fertilisers, petrochemicals, and other gas-based products on completion.
“In addition to boosting exports, the project will reduce fertiliser imports by 30 per cent, saving Nigeria approximately $200m in foreign exchange annually,” as well as creating thousands of jobs,” Ekpo said.
Following the signing, Brass and its partners will now carry on with the construction of the $3.3 billion project located on Brass Island in southern Bayelsa state.
Subsequently, NNPCL and partners will deliver about 270 million standard cubic feet of gas daily to the project.
The Brass Fertilizer and Petrochemical Project is set to generate over $1.5bn annually from exports of fertilizers, petrochemicals, and other gas-based products, the MPR Permanent Secretary, Ambassador Nicholas Ella, said.
“It is projected to contribute around $600m annually to Nigeria’s GDP, with a broader economic impact of up to $2bn per year, thanks to the growth it will spur in related industries.
“The project will also create over 5,000 direct jobs and 35,000 indirect jobs, significantly improving the livelihoods of many Nigerians, particularly in the Niger Delta region,” Ella said.
