The Nigerian National Petroleum Corporation (NNPC) Limited, in partnership with Shell, TotalEnergies, and Agip, has finalized a major gas supply deal with Brass Fertilizer & Petrochemical Company Ltd. The Gas Sales and Purchase Agreement (GSPA), signed in Abuja on Friday, marks a significant milestone for the methanol-manufacturing project, nearly nine years after its initial announcement.
Ekperikpe Ekpo, the Minister of Petroleum Resources (Gas), hailed the agreement as “a significant milestone in the ongoing efforts to monetize Nigeria’s vast gas reserves.”
This agreement clears the path for Brass Fertilizer & Petrochemical Company and its partners to begin construction of the $3.3 billion project, which will be located on Brass Island in Bayelsa State. NNPC and its partners will supply approximately 270 million standard cubic feet of gas daily to the facility.
Upon completion, the project is expected to generate over $1.5 billion annually through the export of fertilizers, petrochemicals, and other gas-based products. Ekpo added that the project will not only boost exports but also reduce Nigeria’s fertilizer imports by 30%, saving the country around $200 million in foreign exchange annually.
At the recent Forum on China-Africa Cooperation, China Road and Bridge Corporation (CRBC) signed an additional agreement with Brass Fertilizer & Petrochemical Company Ltd. to support the development of the Brass Industrial Park and methanol complex, which is projected to inject $3.3 billion into the Nigerian economy.
The broader Brass Oil and Gas City project aims to position Nigeria as a key hub for downstream oil and gas manufacturing and industrial activities in Africa. Situated on Brass Island, it is poised to become one of the largest global centers for petrochemical, fertilizer, refinery, and hydrocarbon processing. To date, $3.5 billion has been committed to various projects within the Brass Oil and Gas City.
The Brass Methanol Project, spearheaded by Brass Fertilizer & Petrochemical Company Limited (BFPCL), is a joint venture between DSV Engineering Limited, NNPC, and the Nigerian Content Development & Monitoring Board (NCDMB). BFPCL will manage and operate the venture.
(Sources: Nairametrics)
