The Federal Government, through the Nigerian National Petroleum Company Limited, has signed an agreement to begin sales of gas to the methanol-manufacturing project of the $3.3bn Brass Fertilizer & Petrochemical Company Ltd.
The gas sales-and-purchase agreement was signed with Shell, TotalEnergies and Agip on Friday in Abuja, nine years after the project was first announced.
Speaking at the signing ceremony held at the headquarters of the ministry, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the signing represented “a significant milestone in ongoing efforts to monetise Nigeria’s vast gas reserves.”
Related Posts:
He said the agreement indicated a significant milestone in efforts to utilise the abundant natural gas resources for rapid industrialisation and economic growth.
“This Signing Ceremony is a significant milestone in the development of the US$3.3bn Brass Methanol Project, it is one more step in the journey to making the project a reality, and I urge all parties to continue in the same steadfastness that has enabled us to surmount all previous hurdles,” the minister stated in his address.
Ekpo added that the project was also expected “to bring in much-needed Foreign Direct Investment and create thousands of jobs for our teeming population while changing the face and fortunes of the host state and community for good.”
He also urged all the parties to sustain the steadfastness with which they overcame the hurdles of making the signing for the project a reality by achieving a financial close and commencing the actual construction of the project within the shortest possible time.
“The project is expected to generate more than $1.5bn annually from exports of fertilisers, petrochemicals, and other gas-based products on completion.
“In addition to boosting exports, the project will reduce fertiliser imports by 30 per cent, saving Nigeria approximately $200m in foreign exchange annually,” as well as creating thousands of jobs.
The accord would enable Brass and its partners to proceed with the construction of the $3.3bn project.
NNPCL and its partners were expected to deliver an estimated 270 million standard cubic feet of gas daily to the project located on Brass Island in southern Bayelsa State.
Also at the event, the MPR Permanent Secretary, Ambassador Nicholas Ella, said the Brass Fertiliser and Petrochemical Project, valued at $3.5bn, is set to generate more than $1.5bn annually from exports of fertilisers, petrochemicals, and other gas-based products.
The agreement, he said, was a key achievement within the Decade of Gas initiative, launched by President Bola Tinubu’s administration, which aims to position gas as the cornerstone of Nigeria’s industrialisation and energy security.
He said, “It is projected to contribute around $600m annually to Nigeria’s GDP, with a broader economic impact of up to $2bn per year, thanks to the growth it will spur in related industries.
“The project will also create over 5,000 direct jobs and 35,000 indirect jobs, significantly improving the livelihoods of many Nigerians, particularly in the Niger Delta region.”
The Permanent Secretary said the initiative was closely aligned with Nigeria’s commitment to achieving zero routine flaring by 2030 and advancing the goals of the National Gas Policy by fully utilising its gas resources for sustainable development.
The Executive Vice President of Upstream NNPC, Oritsemeyiwa Eyesan, said the agreement would progress one of the vital boxes to achieve a 10,000-methanol plant in Nigeria.
The Punch
| Join our new WhatsApp community! Click this link to receive your daily dose of NEWS FLASH content. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. |
