The Federal Government, through the Nigerian National Petroleum Company Limited (NNPCL), has signed a gas sales agreement to support the $3.3 billion Brass Fertilizer & Petrochemical Company Ltd. methanol manufacturing project.
This agreement was finalized on Friday in Abuja with partners Shell, TotalEnergies, and Agip, marking a significant milestone nine years after the project’s initial announcement.
During the signing ceremony, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, highlighted that the agreement is a major step towards monetizing Nigeria’s abundant gas reserves for industrialization and economic growth. He urged all parties involved to maintain the commitment that has helped them overcome previous challenges.
“This signing represents one more step in making the Brass Methanol Project a reality,” Ekpo stated. “It is expected to attract much-needed Foreign Direct Investment, create thousands of jobs, and positively impact the host community.”
The project aims to generate over $1.5 billion annually through the export of fertilizers, petrochemicals, and other gas-based products. Additionally, it is projected to reduce Nigeria’s fertilizer imports by 30%, saving approximately $200 million in foreign exchange each year.
The agreement will enable Brass and its partners to construct the project on Brass Island in southern Bayelsa State, delivering an estimated 270 million standard cubic feet of gas daily.
The initiative aligns with Nigeria’s commitment to achieving zero routine flaring by 2030 and advancing the National Gas Policy by fully utilizing gas resources for sustainable development. Oritsemeyiwa Eyesan, Executive Vice President of Upstream NNPC, stated that this agreement is a crucial step toward establishing a 10,000-metric-ton methanol plant in Nigeria.
