• Friday, May 24, 2024
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FG signs deal with Shell to supply $3.8 billion methanol facility

FG signs deal with Shell to supply $3.8 billion methanol facility

The federal government has struck a deal with Shell to supply gas to the proposed $3.8 billion Brass methanol facility.

Ekperikpe Ekpo, the State Minister of Petroleum Resources (Gas), disclosed this yesterday, during a meeting with important project stakeholders.

Ekpo revealed that the Gas Supply and Purchase Agreement (GSPA), which is critical to the Brass methanol project, will be signed in May 2024 following successful discussions with Shell’s Nigeria CEO and executives from other firms participating.

The GSPA will secure a long-term gas supply from a joint venture controlled by Shell for the methanol plant to be developed on Brass Island in the oil-rich coastal state of Bayelsa.

Ekpo said, “The NNPC/Shell joint venture partners are now fully committed to uninterrupted gas supply for the development of the Brass Methanol project”.

During the discussion, Ekpo also apprised officials of President Bola Tinubu’s desire to address concerns regarding the project’s gas supply.

According to him, the President is fervent about the speedy take-off of the project to attract the much-needed foreign direct investment and the ensuing economic benefits for the nation.

“The President is very passionate about this project and wants something positive to happen in respect of the Brass Methanol project before the end of May this year,” Ekpo said.

The brass methanol plant, situated at Brass Island, Bayelsa, is currently under construction but is expected to become operating this year. When completed, it will have a daily capacity of 10,000 tonnes of methanol.

The project includes a gas processing plant, a methanol production and refining site, and product export facilities.

By lowering dependency on imports, the $3.8 billion project is expected to enhance Nigeria’s economy and generate up to 15,000 jobs during construction.