The Nigerian National Petroleum Corporation (NNPC) Limited, in collaboration with Shell, TotalEnergies, and Agip, has finalized a pivotal gas supply agreement with Brass Fertilizer & Petrochemical Company Ltd. This landmark deal, signed in Abuja on Friday, marks a significant advancement for the long-awaited methanol-manufacturing plant, nearly nine years after its initial announcement.
Minister of Petroleum Resources (Gas) Ekperikpe Ekpo described the agreement as “a significant milestone in the ongoing efforts to monetize Nigeria’s vast gas reserves.” The successful conclusion of this agreement enables Brass Fertilizer & Petrochemical Company and its partners to commence construction of the $3.3 billion facility on Brass Island in Bayelsa State.
As part of this agreement, NNPC and its partners are set to supply approximately 270 million standard cubic feet of gas daily to the methanol plant. Upon its completion, the project is projected to generate over $1.5 billion annually from the export of fertilizers, petrochemicals, and other gas-based products. Ekpo emphasized that this initiative would significantly reduce fertilizer imports by 30%, ultimately saving Nigeria around $200 million in foreign exchange each year.
This move aligns with Nigeria’s broader strategy to reduce dependency on oil revenue and promote investment in its underutilized gas reserves, estimated at 200 trillion cubic feet. Currently, a significant portion of the country’s gas output is either flared or re-injected into wells rather than being utilized for productive purposes.
Brass Fertilizer & Petrochemical Company has recently made strides in its logistics capabilities as well. The company announced a partnership with COSCO Shipping Lines Co. Ltd. to acquire 16 new methanol-powered vessels, which will transport products from the methanol plant to international markets. This step highlights the company’s commitment to ensuring efficient distribution of its products globally.
In addition to this agreement, at the recently concluded Forum on China-Africa Cooperation, the China Road and Bridge Corporation (CRBC) signed a key agreement with Nigeria’s Brass Fertilizer and Petrochemical Company Ltd. This deal focuses on developing the Brass Industrial Park and methanol complex, which is expected to inject an estimated $3.3 billion into the Nigerian economy.
The Brass Oil and Gas City project aims to position Nigeria as a premier hub for downstream oil and gas manufacturing in Africa. Located on Brass Island, this ambitious development seeks to establish one of the largest global centers for petrochemical, fertilizer, refinery, and hydrocarbon processing. Approximately $3.5 billion has been committed to various projects within the Brass Oil and Gas City initiative, signaling strong interest and investment in Nigeria’s gas sector.
The Brass Methanol Project, spearheaded by Brass Fertilizer & Petrochemical Company Limited (BFPCL), is a joint venture involving DSV Engineering Limited, NNPC, and the Nigerian Content Development & Monitoring Board (NCDMB). BFPCL will own and operate the venture, aiming to contribute significantly to Nigeria’s economic landscape and diversify its revenue sources through enhanced utilization of natural gas resources.
In conclusion, the finalized gas sales and purchase agreement represents a transformative step for Nigeria’s energy sector, highlighting the government’s commitment to leveraging its natural gas reserves for economic growth, job creation, and sustainable development. As the country works towards establishing itself as a key player in the global gas market, initiatives like the Brass Methanol Project will be pivotal in driving this vision forward.
