The Nigerian National Petroleum Corporation (NNPC) Limited, in partnership with Shell, TotalEnergies, and Agip, has signed a groundbreaking gas sales and purchase agreement with Brass Fertilizer & Petrochemical Company Ltd. This agreement marks a major milestone in Nigeria’s ongoing efforts to monetize its vast gas reserves and diversify its energy sector.
The deal, finalised in Abuja nearly nine years after the project was first announced, will supply approximately 270 million standard cubic feet of gas daily to the $3.3 billion methanol-manufacturing plant located on Brass Island, Bayelsa State.
Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, hailed the agreement as a pivotal moment for Nigeria’s gas sector, stating that it will significantly boost the country’s export potential while also cutting down on fertiliser imports by 30%, saving an estimated $200 million in foreign exchange annually.
Strategic Importance for Nigeria’s Gas Sector
With over 200 trillion cubic feet of underutilised gas reserves, Nigeria is striving to reduce its dependency on oil by encouraging investments in its natural gas sector. Currently, a large portion of the country’s gas is either flared or re-injected into wells, resulting in missed opportunities for both domestic use and exports.
This new deal is seen as a significant step in reversing that trend, with the Brass Methanol Project set to generate over $1.5 billion annually through the export of fertilisers, petrochemicals, and other gas-based products. Ekpo emphasised the broader economic benefits of the project, which include job creation, infrastructure development, and reduced reliance on imports.
Progress and Partnerships
The Brass Fertilizer & Petrochemical Company, in collaboration with its international partners, recently signed an agreement with COSCO Shipping Lines Co. Ltd. to acquire 16 methanol-powered vessels, which will be used to transport products from the methanol plant to international markets.
Additionally, at the Forum on China-Africa Cooperation, a key agreement was signed between China Road and Bridge Corporation (CRBC) and Brass Fertilizer & Petrochemical Company for the development of the Brass Industrial Park and methanol complex. This development, which aims to position Nigeria as a leading hub for oil and gas processing in Africa, is expected to attract significant investments and further elevate the country’s energy sector.
The Brass Oil and Gas City Vision
The Brass Methanol Project is a cornerstone of the larger Brass Oil and Gas City initiative, which seeks to establish Nigeria as a global leader in downstream oil and gas manufacturing. The city will house petrochemical, fertiliser, refinery, and hydrocarbon processing facilities, further solidifying Nigeria’s role in the international energy market.
The Brass Oil and Gas City, located on Brass Island, has already attracted over $3.5 billion in committed investments, with the methanol complex playing a crucial role in driving economic growth and industrial development in the region.
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