The Federal Government, through the Nigerian National Petroleum Company Limited (NNPCL), has signed a gas sales and purchase agreement to supply gas for the $3.3 billion Brass Fertilizer & Petrochemical Company Ltd’s methanol-manufacturing project.
This agreement, finalized with Shell, TotalEnergies, and Agip on Friday in Abuja, marks a significant step forward nearly nine years after the project’s initial announcement.
During the signing ceremony at the Ministry of Petroleum Resources, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized that this agreement marks a major milestone in efforts to monetize Nigeria’s extensive gas reserves.
He highlighted the project’s potential to drive rapid industrialization and economic growth by utilizing the country’s abundant natural gas resources.
“This signing is a significant milestone for the Brass Methanol Project, moving us closer to making this initiative a reality,” Ekpo stated.
He urged all parties involved to maintain the same determination that has allowed them to overcome previous obstacles.
The project is expected to attract vital foreign direct investment and create thousands of jobs, positively impacting the host state and community.
Ekpo further noted that upon completion, the project could generate over $1.5 billion annually from exports of fertilizers, petrochemicals, and other gas-based products.
It also aims to reduce fertilizer imports by 30%, saving Nigeria approximately $200 million in foreign exchange each year.
“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.
CREDIT: Allneeds, PUNCH
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