Announced by the Federal Government on Monday is the upcoming execution of the Gas Supply and Purchase Agreement in support of the Final Investment Decision for the $3.8bn Brass methanol project, scheduled for May 2024.
The Brass methanol project, located in Bayelsa State, is a significant industrial initiative aimed at producing methanol, a vital industrial chemical, utilizing natural gas resources. As of now, Nigeria relies solely on methanol imports.
Situated in Brass Island, Bayelsa, the facility is projected to have a daily methanol production capacity of 10,000 tonnes upon completion. The construction is ongoing with expectations for operational readiness later this year.
The $3.8bn investment is anticipated to generate up to 15,000 employment opportunities during the construction phase, contributing to reducing import dependence and stimulating the Nigerian economy.
This collaborative project involves DSV Engineering Limited, the Nigerian National Petroleum Company Limited, and the Nigerian Content Development & Monitoring Board.
Following a meeting with key project stakeholders in his office, the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed the execution date for the gas supply agreement in Abuja.
The discussion aimed at affirming ample gas supply for the Brass methanol project, facilitated by the NNPC/Shell/TotalEnergies/NAOC Joint Venture, and planning the subsequent steps for finalizing and implementing the Gas Supply and Purchase Agreement.
Among those in attendance were Mr. Olanrewaju Igandan from NNPC Upstream Investment Management Services and Mr. Richard Orianzi, Deputy Managing Director of Nigerian Agip Oil Company.
Also present were Mr. Osagie Okunbor, Managing Director of Shell Petroleum Development Company Nigeria, and Mr. Ben Okoye, Managing Director of Brass Fertiliser and Petrochemical Ltd, alongside others.
Having settled the Gas Supply and Purchase Agreement matter, Ekpo highlighted President Bola Tinubu’s keen interest in resolving gas supply-related issues for the Brass methanol project.
The Minister emphasized the President’s eagerness for prompt commencement of the project to attract essential Foreign Direct Investment and associated economic advantages for the nation.
“Mr. President is keen on progressing the Brass methanol project swiftly to bring about positive outcomes before May concludes,” Ekpo asserted.
Sponsored by Brass Fertiliser & Petrochemical Company Limited, the Brass methanol project encompasses a gas processing plant, methanol production and refining plant, as well as product export infrastructure.
Following the meeting, Ekpo declared successful resolution of the GSPA issue, with its execution slated for May.
“The NNPC/SPDC JV partners are fully committed to ensuring uninterrupted gas supply for the advancement of the Brass methanol project,” the gas minister affirmed.