The Nigerian National Petroleum Company Limited (NNPCL) has entered into a significant agreement to supply gas for the Brass Fertilizer & Petrochemical Company Ltd.'s methanol-manufacturing project, valued at $3.3 billion. This gas sales-and-purchase agreement was formalized on Friday in Abuja, marking a notable development nearly nine years after the project's initial announcement.
During the signing ceremony, Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), emphasized that this agreement signifies a critical step in Nigeria's ongoing efforts to monetize its extensive gas reserves.
Ekpo described the signing as an important milestone in realizing the Brass Methanol Project, urging all stakeholders to maintain their commitment as they navigate the remaining challenges.
He noted that the project is anticipated to attract essential foreign direct investment and create thousands of jobs, significantly benefiting the local community and state.
The agreement is expected to facilitate the delivery of approximately 270 million standard cubic feet of gas daily to the project site on Brass Island in Bayelsa State.
Furthermore, the project is projected to generate over $1.5 billion annually from exports of fertilizers and petrochemicals upon completion. It aims to cut fertilizer imports by 30%, potentially saving Nigeria about $200 million in foreign exchange each year while creating thousands of direct and indirect jobs.
Ambassador Nicholas Ella, Permanent Secretary of the Ministry of Petroleum Resources, noted that this agreement represents a key achievement within President Bola Tinubu’s Decade of Gas initiative. This initiative seeks to position natural gas as a cornerstone for Nigeria’s industrialization and energy security, contributing an estimated $600 million annually to the nation's GDP.
The Brass Fertilizer and Petrochemical Project is designed not only to enhance Nigeria's export capacity but also to stimulate growth in related industries, with an overall economic impact projected at up to $2 billion annually.