FG Secures Gas Supply for $3.3Bn Brass Methanol Project

Nigeria Signs $3.3Bn Gas Supply Agreement

“The project will also create over 5,000 direct jobs and 35,000 indirect jobs...”

Nigeria's $3.3Bn Brass Methanol Project takes off as NNPCL signs gas supply agreement with Brass Fertilizer & Petrochemical Company, securing 270m standard cubic feet of gas daily.

The Nigerian National Petroleum Company Limited (NNPCL) has taken a significant step forward in monetizing Nigeria's vast gas reserves by signing a gas sales and purchase agreement with Brass Fertilizer & Petrochemical Company Limited. This agreement, worth $3.3 billion, will supply gas to Brass Fertilizer's methanol-manufacturing project, a joint venture involving DSV Engineering Limited, the Nigerian National Petroleum Corporation (NNPC), and the Nigerian Content Development and Monitoring Board (NCDMB).

Although the project was first announced in 2015, the recent signing ceremony held at the Ministry of Petroleum Resources headquarters in Abuja marked a major milestone. The Minister of State for Petroleum Resources, Ekperikpe Ekpo, emphasized the significance of this agreement in Nigeria's efforts to harness its gas reserves. The deal was signed with Shell, TotalEnergies, and Agip, further solidifying the partnership.

This development is expected to boost Nigeria's economy and energy sector, leveraging Afreximbank's financing solutions to support African economies. With NNPCL at the forefront, Nigeria is poised to unlock its natural gas potential, driving growth and industrialization.

“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,” Ekpo said.

“The project is to 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.

“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.

Nigeria's gas sector just got a major boost. The Nigerian National Petroleum Company Limited (NNPCL) has signed an agreement to supply gas to the $3.3 billion Brass methanol-manufacturing project, located on Brass Island in Bayelsa state. This deal will enable Brass and its partners to move forward with construction, while NNPCL and its partners will deliver approximately 270 million standard cubic feet of gas daily.

The Ministry of Petroleum Resources Permanent Secretary, Nicholas Ella, hailed this agreement as a significant milestone within the Decade of Gas initiative. Launched by President Muhammadu Buhari in 2021, this initiative aims to position gas as the cornerstone of Nigeria's industrialization and energy security. The goal is to harness Nigeria's vast gas reserves, estimated at around 600 trillion cubic feet, to drive economic growth and development. With this agreement, Nigeria is one step closer to achieving its vision of becoming a major player in the global gas market.

“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,” he stated.

“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.”

Partners:

• Brass Fertilizer & Petrochemical Company Limited
• DSV Engineering Limited
• Nigerian National Petroleum Corporation (NNPC)
• Nigerian Content Development and Monitoring Board (NCDMB)
• Shell
• TotalEnergies
• Agip