October 12, (THEWILL) – The Nigerian National Petroleum Company (NNPC) Limited has signed a partnership deal with Shell, TotalEnergies, and Agip, to supply gas to the methanol-manufacturing plant of Brass Fertiliser & Petrochemical Company Ltd.
The deal paves the way for Brass Fertiliser & Petrochemical Company and its partners to commence construction of the $3.3 billion project.
Supervised by the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, the agreement was signed in Abuja on Friday.
NNPC and its partners are expected to supply approximately 270 million standard cubic feet of gas daily to the facility, which will be situated on Brass Island in Bayelsa State.
Upon completion, the government anticipates the project will generate over $1.5 billion annually from exports of fertilisers, petrochemicals, and other gas-based products, Ekpo stated.
In addition to boosting exports, the project will reduce fertiliser imports by 30%, saving Nigeria approximately $200 million in foreign exchange annually.
Ekpo described the agreement as “a significant milestone in the ongoing efforts to monetise Nigeria’s vast gas reserves.”
He said, “While this signing ceremony is a significant milestone in the development of the $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.
“It is my expectation, that within the shortest possible, BFPCL and its partners will achieve financial close and commence actual construction of this project of national importance, which we expect to bring in much-needed FDI and create thousands of jobs for our teeming population while changing the face and fortunes of the host state and community for good”, he said.
On his part, Permanent Secretary, Ministry of Petroleum Resources, Nicholas Ella, described the GSPA as a significant milestone in monetising Nigeria’s vast gas reserves, currently at over 209 trillion cubic feet.
“The Brass Fertiliser and Petrochemical Project, valued at $3.5 billion, is set to generate more than $1.5 billion annually from exports of fertilisers, petrochemicals, and other gas-based products. In addition to boosting exports, the project will reduce fertiliser imports by 30 per cent, saving Nigeria approximately $200 million in foreign exchange annually.
“Furthermore, it is projected to contribute around $600 million annually to Nigeria’s Gross Domestic Product (GDP), with a broader economic impact of up to $2 billion 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.
“I want to commend the SPDC Joint Venture partners—Shell, TotalEnergies, and Eni—who have collectively invested over $15 billion in Nigeria’s gas infrastructure over the past decade”, he said.
Also speaking, the Managing Director of BFPCL, Dr Ben Okoye, emphasised the need to unlock Nigeria’s gas deposits promptly, citing the urgency to utilise gas before it becomes less relevant.
Bayelsa State Governor, Senator Douye Diri, welcomed the project, highlighting its potential to generate employment opportunities for the state’s youths and Nigeria at large.
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