The Federal Government, through the Nigerian National Petroleum Company Limited (NNPCL), has finalized a gas sales agreement to power the $3.3 billion Brass Fertilizer & Petrochemical Company Ltd’s methanol-manufacturing project.
Speaking during the signing ceremony held at the Ministry of Petroleum Resources in Abuja, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, hailed the agreement as a pivotal moment in Nigeria’s quest to monetize its vast gas reserves.
The deal, signed with Shell, TotalEnergies, and Agip, comes nine years after the project was first proposed.
“This signing represents a significant milestone in ongoing efforts to monetize Nigeria’s vast gas reserves,” Ekpo stated. He emphasized that the agreement marks a major step toward leveraging the country’s abundant natural gas resources to drive industrialization and spur economic growth.
The minister described the event as a crucial step in realizing 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 with the same steadfastness that has enabled us to overcome previous hurdles,” he said.
Ekpo further highlighted the potential of the project to attract Foreign Direct Investment (FDI) and create thousands of jobs. “This project is expected to bring in much-needed foreign investment and transform the host community and state for the better,” he added, urging all stakeholders to expedite financial closure and commence construction as soon as possible.
Upon completion, the project is projected to generate over $1.5 billion annually from exports of fertilizers, petrochemicals, and other gas-based products, while reducing Nigeria’s fertilizer imports by 30%, saving the country approximately $200 million annually in foreign exchange.
The agreement allows Brass and its partners to proceed with the construction phase of the methanol plant, with NNPCL and its partners expected to deliver an estimated 270 million standard cubic feet of gas daily to the project site on Brass Island, Bayelsa State.
Also speaking at the event, the Permanent Secretary of the Ministry of Petroleum Resources, Ambassador Nicholas Ella, emphasized the project’s importance, stating it aligns with the Decade of Gas initiative launched by President Bola Tinubu’s administration. He noted that the initiative aims to make gas the cornerstone of Nigeria’s industrial and energy policies.
Ella said, “The project is expected to contribute approximately $600 million annually to Nigeria’s GDP, with a broader economic impact of up to $2 billion per year from related industries. It will also create over 5,000 direct jobs and 35,000 indirect jobs, significantly improving livelihoods, particularly in the Niger Delta region.”
The project is aligned with Nigeria’s goal of achieving zero routine gas flaring by 2030 and advancing the objectives of the National Gas Policy, which seeks to maximize the use of the country’s gas resources for sustainable development.
NNPCL’s Executive Vice President of Upstream, Oritsemeyiwa Eyesan, added that the agreement moves Nigeria closer to its goal of establishing a 10,000-methanol plant, further advancing the country’s gas-based industrial ambitions.
