Three International Oil Companies (IOCs) and state-owned Nigerian National Petroleum Company Limited (NNPC) on Friday signed a Gas Sales and Purchase Agreement (GSPA) for the commencement of the Brass Fertiliser and Petrochemical project located in Bayelsa State.
The agreement supervised by the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, paved the way for the Brass Fertiliser and Petrochemical Company Limited (BFPCL) and its partners to achieve financial closure for the project.
The JV partners, comprising NNPC, Shell Petroleum Development Company (SPDC), TotalEnergies Ltd, and Eni, will supply 270 million standard cubic feet of gas per day to BFPCL, marking the largest single GSPA to any domestic gas off-taker in Nigeria.
The project is expected to generate over $1.5 billion annually from exports of fertilisers, petrochemicals, and other gas-based products.
Speaking at the event in Abuja, Ekpo asserted that achieving the GSPA showcased Nigeria’s business-friendly environment and the government’s commitment to investor-friendly policies.
He expressed optimism that the BFPCL and its partners would achieve financial closure and commence construction soon to bring in the much needed Foreign Direct Investment (FDI) and create thousands of jobs for Nigeria’s teeming population.
“While this signing ceremony is a significant milestone in the development of the $3.3 billion Brass Methanol project, it is one more step in the journey to making the project a reality, and I urge all parties to continue in the same steadfastness that has enabled us surmount all previous huddles.
“It is my expectation, that within the shortest possible, BFPCL and its partners will achieve financial close and commence actual construction of this project of national importance, which we expect to bring in much needed FDI and create thousands of jobs for our teeming population, while changing the face and fortunes of the host state and community for good,” the minister said.
Permanent Secretary, Ministry of Petroleum Resources, Nicholas Ella, in his remarks, described the GSPA as a significant milestone in monetising Nigeria’s vast gas reserves, currently put at over 209 trillion cubic feet.
“The Brass Fertiliser and Petrochemical Project, valued at $3.5 billion, is set to generate more than $1.5 billion annually from exports of fertilisers, petrochemicals, and other gas-based products.
“In addition to boosting exports, the project will reduce fertiliser imports by 30 per cent, saving Nigeria approximately $200 million in foreign exchange annually.
“Furthermore, it is projected to contribute around $600 million annually to Nigeria’s Gross Domestic Product (GDP), with a broader economic impact of up to $2 billion per year, thanks to the growth it will spur in related industries.
“The project will also create over 5,000 direct jobs and 35,000 indirect jobs, significantly improving the livelihoods of many Nigerians, particularly in the Niger Delta region.
“I want to commend the SPDC Joint Venture partners—Shell, TotalEnergies, and Eni—who have collectively invested over $15 billion in Nigeria’s gas infrastructure over the past decade,” he stated.
Also speaking, the Managing Director of BFPCL, Dr. Ben Okoye, emphasised the need to unlock Nigeria’s gas deposits promptly, citing the urgency to utilise gas before it becomes less relevant.
Bayelsa State Governor, Senator Douye Diri, welcomed the project, highlighting its potential to generate employment opportunities for the state’s youths and Nigeria at large.
Represented by the Commissioner for Trade, Industry and Investment, Dr. Ebieri Jones, Diri invited prospective investors to tap into Bayelsa’s vast potential and peaceful disposition, dubbing it an “investment haven” for investors.
NNPC’s Executive Vice President, Upstream, Oritsemeyiwa Eyesan, in her comments, said the event marked the ticking of one of the vital boxes to progress the 10,000 tons methanol plant in Nigeria.
She stated that the recent executive orders by President Bola Tinubu were a critical enabler that Nigeria’s resources were developed efficiently.
Also at the event were the Managing Director of SPDC, Mr. Osagie Okunbor; Executive Director, Strategy and Business, TotalEnergies, Mr. Abiodun Afolabi and the Vice Chairman/Managing Director Eni, Mr. Fabrizio Bolondi as well as the Coordinating Director, Decade of Gas secretariat , Mr. Ed Ubong.
Emmanuel Addeh
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