The Nigerian National Petroleum Corporation (NNPC) Limited, in partnership with Shell, TotalEnergies, and Agip, has finalised a major agreement to supply gas to the Brass Fertilizer & Petrochemical Company Ltd.’s methanol plant.
The gas sales and purchase agreement, a key development for the project, was signed in Abuja on Friday—nearly nine years after the project was first announced.
Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, hailed the agreement as a “significant milestone” in efforts to monetise Nigeria’s abundant gas reserves.
The deal clears the way for Brass Fertilizer & Petrochemical Company and its partners to begin construction of the $3.3 billion facility.
NNPC and its partners will supply around 270 million standard cubic feet of gas daily to the plant, which will be located on Brass Island in Bayelsa State.
Upon completion, the government expects the project to generate over $1.5 billion annually from exports of fertilisers, petrochemicals, and other gas-based products, according to Ekpo.
He added, “In addition to boosting exports, the project will reduce fertiliser imports by 30%, saving Nigeria approximately $200 million in foreign exchange every year.”
As Africa’s largest crude oil producer, Nigeria is aiming to reduce its reliance on oil by fostering investment in its largely underdeveloped gas reserves, which amount to 200 trillion cubic feet. At present, much of the country’s gas output is either flared or re-injected into wells.
Recently, Brass Fertilizer & Petrochemical Company announced a deal with COSCO Shipping Lines Co. Ltd. for the purchase of 16 new methanol-powered vessels to transport products from the methanol plant to international markets.
At the recent Forum on China-Africa Cooperation, China Road and Bridge Corporation (CRBC) signed a significant agreement with Nigeria’s Brass Fertilizer and Petrochemical Company Ltd.
The agreement, centred on developing the Brass Industrial Park and methanol complex, is expected to contribute an estimated $3.3 billion to the Nigerian economy.
The Brass Oil and Gas City project aims to establish Nigeria as a key hub for downstream oil and gas manufacturing and industrial activities across Africa. Located on Brass Island in Bayelsa State, the development is poised to become one of the world’s leading centres for petrochemicals, fertiliser, refining, and hydrocarbon processing.
These projects will help build a world-class, export-focused oil and gas processing city in Nigeria. To date, $3.5 billion has been committed to various ventures within the Brass Oil and Gas City.
The Brass Methanol Project, sponsored by Brass Fertilizer & Petrochemical Company Limited (BFPCL), is a joint venture involving DSV Engineering Limited, NNPC, and the Nigerian Content Development & Monitoring Board (NCDMB). BFPCL will own and operate the venture.