In partnership with Shell, TotalEnergies, and Agip, the Nigerian National Petroleum Corporation (NNPC) Limited has completed a major agreement to supply gas to Brass Fertiliser & Petrochemical Company Ltd.’s methanol-producing plant.
Nearly nine years after the project’s original announcement, the gas sales and purchase agreement was signed in Abuja on Friday, marking a significant milestone for the project.
The agreement was hailed as “a significant milestone in the ongoing efforts to monetise Nigeria’s vast gas reserves” by Ekperikpe Ekpo, Minister of Petroleum Resources (Gas).
The agreement makes it possible for Brass Fertiliser & Petrochemical Company to start building the $3.3 billion project with its partners.
NNPC and its partners plan to provide the facility, to be built on Brass Island in Bayelsa State, with about 270 million standard cubic feet of gas per day.
According to Ekpo, the government expects the project to provide over $1.5 billion in revenue per year from the export of petrochemicals, fertilizers, and other gas-based products.
“The project will reduce fertilizer imports by 30% in addition to increasing exports, saving Nigeria approximately $200 million in foreign exchange annually,” he said.
What To Note
Nigeria, which produces the most crude oil in Africa, is promoting investment in its 200 trillion cubic feet of underutilized gas reserves in an effort to lessen its reliance on oil. The majority of the gas produced in the nation is currently flared or reinjected into wells.
In order to transport goods from its methanol plant to foreign markets, Brass Fertiliser & Petrochemical Company recently announced an arrangement with COSCO Shipping Lines Co. Ltd. to acquire 16 new methanol-powered vessels.
Background
Brass Fertiliser and Petrochemical Company Ltd. of Nigeria and China Road and Bridge Corporation (CRBC) inked a significant contract during the just-completed Forum on China-Africa Cooperation.
The agreement, which is centered on the growth of the methanol complex and Brass Industrial Park, is anticipated to boost Nigeria’s economy by an estimated $3.3 billion.
The goal of the Brass Oil and Gas City project is to position Nigeria as Africa’s premier center for downstream oil and gas manufacturing and industrial operations.
The initiative, which is situated on Brass Island in Bayelsa State, intends to grow into one of the biggest petrochemical, fertilizer, refinery, and hydrocarbon processing hubs in the world.
These projects will contribute to Nigeria becoming a world-class, export-focused oil and gas processing hub. To date, the Brass Oil and Gas City has committed $3.5 billion to a number of initiatives.
A joint venture between DSV Engineering Limited, the Nigerian National Petroleum Corporation (NNPC), and the Nigerian Content Development & Monitoring Board (NCDMB), the Brass Methanol Project is funded by Brass Fertiliser & Petrochemical Company Limited (BFPCL). The enterprise will be owned and run by BFPCL.
