Nigeria Signs $3.3 Billion Gas Deal for Methanol Plant
The Federal Government has signed a gas sales and purchase agreement with Shell, TotalEnergies, and Agip to supply gas to the $3.3 billion Brass Fertilizer & Petrochemical Company Ltd. The deal, signed on Friday in Abuja, marks a significant milestone in Nigeria’s efforts to monetize its vast gas reserves.
Minister of State for Petroleum Resources, Ekperikpe Ekpo, described the signing as a “significant milestone” in the country’s quest for rapid industrialization and economic growth. The project is expected to generate $1.5 billion annually from exports and create thousands of jobs.
The Brass Methanol Project will receive 270 million standard cubic feet of gas daily from the Nigerian National Petroleum Company Limited (NNPCL) and its partners. The project, located on Brass Island in Bayelsa State, aims to reduce fertilizer imports by 30% and save Nigeria approximately $200 million in foreign exchange annually.
Permanent Secretary Ambassador Nicholas Ella noted that the project aligns with Nigeria’s Decade of Gas initiative, launched by President Bola Tinubu’s administration. The initiative aims to position gas as the cornerstone of Nigeria’s industrialization and energy security.
Key benefits of the project include:
- Annual revenue generation of $1.5 billion
- Creation of 5,000 direct and 35,000 indirect jobs
- Contribution of $600 million annually to Nigeria’s GDP
- Reduction of fertilizer imports by 30%
- Savings of $200 million in foreign exchange annually
The agreement marks a significant step towards Nigeria’s economic growth and industrialization.
