The Nigerian National Petroleum Corporation (NNPC) Limited teams up with Shell, TotalEnergies, and Agip to secure a gas supply agreement for the Brass Fertilizer & Petrochemical Company’s methanol plant. This pivotal deal, finalized in Abuja on Friday, comes nearly nine years after the project was first announced.
Petroleum Resources Minister Ekperikpe Ekpo highlights the agreement as a key step in leveraging Nigeria’s extensive gas reserves. The partnership enables the Brass Fertilizer & Petrochemical Company to kick off construction of the $3.3 billion facility, set to be located on Brass Island in Bayelsa State. NNPC and its partners will supply around 270 million standard cubic feet of gas daily to the plant.
Once operational, the government anticipates the project will generate over $1.5 billion annually from exports of fertilizers and petrochemicals. Ekpo notes that this initiative not only boosts exports but also cuts fertilizer imports by 30%, saving Nigeria about $200 million in foreign exchange each year.
As Africa’s largest crude oil producer, Nigeria aims to diversify its economy by tapping into its vast gas reserves, estimated at 200 trillion cubic feet. Currently, much of the country’s gas is either flared or re-injected.
In a related move, Brass Fertilizer & Petrochemical Company recently partners with COSCO Shipping Lines to acquire 16 new methanol-powered vessels for transporting products to global markets.
At the recent Forum on China-Africa Cooperation, the China Road and Bridge Corporation (CRBC) finalizes a significant agreement with Brass Fertilizer and Petrochemical Company Ltd., focusing on the development of the Brass Industrial Park and methanol complex, projected to inject $3.3 billion into Nigeria’s economy.
The Brass Oil and Gas City project aims to position Nigeria as a premier hub for downstream oil and gas manufacturing in Africa. Located on Brass Island, this initiative strives to become a leading global center for petrochemicals, fertilizers, and hydrocarbon processing, with $3.5 billion already committed to various projects in the area.
The Brass Methanol Project, initiated by Brass Fertilizer & Petrochemical Company Limited (BFPCL), is a collaboration involving DSV Engineering Limited, NNPC, and the Nigerian Content Development & Monitoring Board (NCDMB), with BFPCL overseeing the operations.
