Ekperikpe Ekpo, the Minister of State for Gas, has said that the Federal government secured an agreement with Shell (SHELL) to supply gas to its planned $3.8 billion methanol plant in Brass, Bayelsa State, clearing a significant obstacle for the final investment decision on the project.
Ekpo said that following successful negotiations with the CEO of Shell Nigeria and executives from other participating companies, the Gas Supply and Purchase Agreement (GSPA) essential for the Brass methanol project will be signed next month.
The GSPA has secured a long-term gas supply agreement with a Shell-led joint venture to support the methanol production plant that is planned to be constructed on Brass Island in Bayelsa State, which is rich in oil resources along the coast.
- “The NNPC/Shell joint venture partners are now fully committed to uninterrupted gas supply for the development of the Brass Methanol project.
- “Mr President is very passionate about this project and wants something positive to happen in respect of the Brass Methanol project before the end of May this year,” Ekpo said
The project includes a gas processing plant, a facility for methanol production and refining, and infrastructure for exporting products.
Recommended reading: Shell to Sell Nigeria Onshore Oil Business for $1.3 Billion
What you should know
The Brass Methanol Plant, currently under construction on Brass Island in Bayelsa, is anticipated to start operations this year.
- Upon completion, it will boast a daily production capacity of 10,000 tonnes of methanol.
- The project is being developed by Brass Fertiliser & Petrochemical Company Limited and includes a gas processing plant, a methanol production and refining facility, and product export infrastructure.
- This $3.8 billion initiative aims to reduce Nigeria’s reliance on imported methanol, boost the economy, and create up to 15,000 jobs during its construction phase.
- Partners in this significant project include DSV Engineering Limited, the Nigerian National Petroleum Company Limited, and the Nigerian Content Development & Monitoring Board.