The Federal Government, via the Nigerian National Petroleum Company Limited, has finalized an agreement to initiate gas sales for the methanol production project of the $3.3 billion Brass Fertilizer & Petrochemical Company Ltd. This gas sales and purchase agreement was established with Shell, TotalEnergies, and Agip on Friday in Abuja, nearly a decade after the project's initial announcement.

During the signing ceremony at the Ministry headquarters, the Minister of State for Petroleum Resources, Ekperikpe Ekpo, remarked that this agreement marks “a significant milestone in ongoing efforts to monetize Nigeria’s extensive gas reserves.” He emphasized that the agreement signifies a crucial step towards leveraging the country's abundant natural gas resources for accelerated industrialization and economic development.

“This signing ceremony is a pivotal moment in the advancement of the US$3.3 billion Brass Methanol Project, representing another step forward in realizing the project, and I encourage all stakeholders to maintain the same determination that has helped us overcome previous challenges,” the minister stated in his speech. 

Ekpo further noted that the project is anticipated to attract essential Foreign Direct Investment and generate thousands of jobs for the growing population, ultimately transforming the economic landscape of the host state and community for the better.

He also encouraged all stakeholders to maintain the determination that enabled them to navigate the challenges of bringing the project to fruition by securing financial closure and initiating construction as swiftly as possible. 

“The project is anticipated to yield over $1.5 billion annually from the export of fertilizers, petrochemicals, and other gas-derived products upon completion. 

“Beyond enhancing exports, the initiative is expected to decrease fertilizer imports by 30 percent, resulting in an annual savings of approximately $200 million in foreign exchange for Nigeria, while also generating thousands of job opportunities.” 

The agreement will allow Brass and its partners to move forward with the construction of the $3.3 billion project. 

NNPCL and its partners are projected to supply around 270 million standard cubic feet of gas daily to the project, situated on Brass Island in southern Bayelsa state. 

During the event, MPR Permanent Secretary, Ambassador Nicholas Ella, highlighted that the Brass Fertilizer and Petrochemical Project, valued at $3.5 billion, is poised to generate more than $1.5 billion annually from the export of fertilizers, petrochemicals, and other gas-based products. 

He noted that this agreement represents a significant milestone within the Decade of Gas initiative, introduced by President Bola Tinubu’s administration, which seeks to establish gas as a fundamental element of Nigeria’s industrialization and energy security. 

He stated: “It is expected to contribute approximately $600 million annually to Nigeria’s GDP, with a broader economic impact of up to $2 billion per year, driven by growth in related sectors. 

“The project will also create over 5,000 direct jobs and 35,000 indirect jobs, greatly enhancing the livelihoods of many Nigerians, especially in the Niger Delta region.” 

The Permanent Secretary emphasized that this initiative aligns closely with Nigeria’s commitment to achieving zero routine flaring by 2030 and advancing the objectives of the National Gas Policy by fully leveraging its gas resources for sustainable development.

The Executive Vice President of Upstream NNPC, Oritsemeyiwa Eyesan, stated that the agreement will advance a crucial step towards establishing a 10,000-methanol plant in Nigeria.