FG Set to Finalize $3.8bn Gas Supply Agreement in May

The Federal Government has announced plans to execute the Gas Supply and Purchase Agreement (GSPA) in May 2024, marking a significant step towards supporting the Final Investment Decision for the $3.8 billion Brass methanol project.

The Brass methanol project, a pivotal industrial endeavor located in Bayelsa State, aims to produce methanol—a vital industrial chemical—utilizing Nigeria’s natural gas resources. Notably, Nigeria currently imports all its methanol, making this project a strategic move towards self-sufficiency.

Situated on Brass Island, Bayelsa, the facility is slated to have a capacity of producing 10,000 tonnes of methanol per day upon completion. The project, still under construction, is expected to commence operations this year, heralding a transformative impact on the Nigerian economy by reducing dependence on imports and creating up to 15,000 jobs during construction.

This ambitious initiative is a collaborative effort between DSV Engineering Limited, the Nigerian National Petroleum Company Limited, and the Nigerian Content Development & Monitoring Board.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, revealed the forthcoming execution date for the gas supply agreement after a meeting with key stakeholders of the project in Abuja. Ekpo emphasized the significance of confirming adequate gas supply to the Brass methanol project by the NNPC/Shell/TotalEnergies/NAOC Joint Venture.

Among the attendees were high-ranking officials such as Olanrewaju Igandan, Head of Joint Venture, Investment Management, NNPC Upstream Investment Management Services, and Richard Orianzi, Deputy Managing Director of the Nigerian Agip Oil Company.

Ekpo underscored President Bola Tinubu’s keen interest in resolving issues pertaining to gas supply for the Brass methanol project, highlighting the President’s eagerness for a swift commencement of the project to attract much-needed Foreign Direct Investment and foster economic growth.

“The NNPC/SPDC JV partners are now fully committed to uninterrupted gas supply for the development of the Brass methanol project,” Ekpo affirmed, signaling a significant milestone in advancing this transformative industrial venture.

The Brass methanol project, spearheaded by Brass Fertiliser & Petrochemical Company Limited, comprises a comprehensive infrastructure including a gas processing plant, a methanol production and refining plant, and product export facilities, among others.

As May approaches, anticipation mounts for the formalization of the Gas Supply and Purchase Agreement, marking a pivotal moment in Nigeria’s journey towards industrial self-sufficiency and economic prosperity.

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