FG to Execute $3.8 Billion Gas Supply Agreement for Brass Methanol Project in May 2024

The Federal Government has announced that it will execute the $3.8 billion Gas Supply and Purchase Agreement (GSPA) in May 2024 to support the Final Investment Decision for the Brass Methanol project.

The project, located in Bayelsa State, is aimed at producing methanol, a key industrial chemical, using Nigeria’s natural gas resources.

The Brass Methanol project, a joint venture between DSV Engineering Limited, the Nigerian National Petroleum Company Limited, and the Nigerian Content Development & Monitoring Board, is expected to have a capacity of 10,000 tonnes of methanol per day upon completion.

The project, which is currently under construction and set to be operational this year, is expected to create up to 15,000 jobs during construction and significantly contribute to the Nigerian economy by reducing reliance on imports.

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

The meeting was held to confirm adequate gas supply to the Brass Methanol project by the NNPC/Shell/TotalEnergies/NAOC Joint Venture and determine the next steps to conclude and execute the GSPA.

During the meeting, Ekpo emphasized President Bola Tinubu’s strong interest in resolving issues related to gas supply for the Brass Methanol project.

The President is reportedly passionate about the project’s timely kick-off to bring in much-needed Foreign Direct Investment and the consequent economic benefits to the country.

The Brass Methanol project, sponsored by Brass Fertiliser & Petrochemical Company Limited, comprises a gas processing plant, a methanol production and refining plant, and product export facilities, among others.

The successful resolution of the GSPA issue and its execution by May 2024 will ensure uninterrupted gas supply for the development of the Brass Methanol project, marking a significant milestone in Nigeria’s industrial and economic growth.