FG approves gas supply to $3.3 billion Methanol plant
The Federal Government has signed a major gas sales agreement to support the $3.3 billion Brass Fertilizer & Petrochemical Company Ltd. project.
The agreement, finalized by the Nigerian National Petroleum Company Limited (NNPCL), includes key partners Shell, TotalEnergies, and Agip.
The signing ceremony was held at the Ministry of Petroleum Resources, where the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the deal as a “significant milestone” in Nigeria’s push to monetize its substantial gas reserves.
“This agreement marks a major step toward utilizing our abundant natural gas resources for rapid industrialization and economic growth,” Ekpo stated.
The Minister urged all stakeholders to maintain the determination that has seen them through previous challenges, emphasizing the importance of achieving financial closure and commencing construction on the project as soon as possible.
“This signing is one more step in the journey to making the Brass Methanol Project a reality,” he added.
Upon completion, the Brass Fertilizer Project is expected to generate over $1.5 billion annually from the export of fertilizers, petrochemicals, and other gas-based products.
Furthermore, it is projected to reduce Nigeria’s fertilizer imports by 30%, saving the nation approximately $200 million in foreign exchange each year.
The project is anticipated to create over 5,000 direct jobs and 35,000 indirect jobs, significantly improving the livelihoods of many Nigerians, particularly in the Niger Delta region.
Ambassador Nicholas Ella, the Permanent Secretary of the Ministry of Petroleum Resources, noted that the project aligns with President Bola Tinubu’s Decade of Gas initiative, aiming to position gas as a cornerstone of Nigeria’s industrialization and energy security.
“It is projected to contribute around $600 million annually to Nigeria’s GDP, with a broader economic impact of up to $2 billion per year, thanks to the growth it will spur in related industries,” he remarked.
Oritsemeyiwa Eyesan, Executive Vice President of Upstream NNPC, also highlighted the agreement’s significance in progressing towards establishing a 10,000-methanol plant in Nigeria, underscoring the project’s potential to reshape the country’s energy landscape.