The Nigerian National Petroleum Company (NNPC) Limited has partnered with Shell, TotalEnergies, and Agip, to finalise a landmark agreement to supply gas to a $3.3 billion methanol plant being developed by Brass Fertilizer & Petrochemical Co. Ltd.
The gas sales-and-purchase agreement was signed on Friday in Abuja, nine years after the project was initially announced.
Ekperikpe Ekpo, the minister of state for petroleum (Gas), said the signing represented “a significant milestone in ongoing efforts to monetize Nigeria’s vast gas reserves.” The accord will enable Brass and its partners to proceed with the construction of the $3.3 billion project.
Nigeria, the largest oil producer in Africa, is seeking to reduce its dependence on crude oil by encouraging investment in its largely untapped gas reserves, estimated at 200 trillion cubic feet. Much of the country’s gas output is currently flared or re-injected into wells.
Read also: NNPC quits monopoly role in Dangote petrol
The state-owned oil company and its partners are expected to supply approximately 270 million standard cubic feet of gas per day to the project, situated on Brass Island in Bayelsa state, southern Nigeria.
The Nigerian government anticipates the project will generate over $1.5 billion annually from exports of fertilisers, petrochemicals, and other gas-derived products, according to a statement by Ekpo.
Brass Fertilizer & Petrochemical Co. Ltd. also recently announced it had secured a deal with COSCO Shipping Lines Co Ltd. for 16 new methanol-powered vessels to transport products from the methanol plant to international markets.
Brass Fertilizer & Petrochemical Co. Ltd. is a registered company in Nigeria since 2009. The company is a joint venture between DSV Engineering Limited (DSV) and two Nigerian state-owned enterprises – the Nigerian National Petroleum Company (NNPC) Limited and the Nigerian Content Development & Monitoring Board (NCDMB).
The project is located on Brass Island in Bayelsa State, Nigeria, and is made up of a number of elements that include a gas supply network comprising gas fields, wells and pipelines, a natural gas processing plant, a methanol production and refining plant, product export facilities, and associated utilities and infrastructure.
The Gas Processing Plant and the Methanol Plant will be located on a 667.5-hectare site on the eastern end of Brass Island close to the St. Nicholas River, and the south by the Atlantic Ocean.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
