$3.8bn Gas Supply Agreement To Be Executed In May

The Federal Government announced on Monday, that the Gas Supply and Purchase Agreement to support the Final Investment Decision for the $3.8bn Brass methanol project is to be executed in May 2024.

The Brass methanol project can be seen as a major industrial project being built in Bayelsa State to produce methanol, a key industrial chemical, using natural gas resources. Nigeria currently imports all its methanol.

The $3.8bn will create up to 15,000 jobs during construction and boost the Nigerian economy by reducing reliance on imports.

This project is a joint venture between DSV Engineering Limited, the Nigerian National Petroleum Company Limited, and the Nigerian Content Development & Monitoring Board.

The execution date for the gas supply agreement was announced by the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja on Wednesday after a meeting with key stakeholders of the project in his office.

Ekpo, in a statement issued by his media aide, Louis Ibah, noted that the meeting was to confirm adequate gas supply to the Brass methanol project by the NNPC/Shell/TotalEnergies/NAOC Joint Venture.

While speaking, Ekpo expressed the President Bola Tinubu’s strong interest in resolving issues relating to gas supply to the Brass methanol project.

According to the Minister, “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."

The Brass methanol project is sponsored by Brass Fertiliser & Petrochemical Company Limited and it is made up of a gas processing plant, a methanol production and refining plant, product export facilities, among others.

At the end of the meeting, Ekpo also revealed that he had successfully resolved the GSPA issue and that it would be executed by May this year.

He said, “The NNPC/SPDC JV partners are now fully committed to uninterrupted gas supply for the development of the Brass methanol project."