• Stakeholders Seek More Investment In Gas Sector
To harness the country’s gas resources, Shell and its partners, including the Nigerian National Petroleum Corporation Limited (NNPC), TotalEnergies, and Eni, have signed a Gas Supply and Purchase Agreement (GSPA) to bring to reality the $3.5 billion Brass Fertilizer and Petrochemical Company Limited (BFPCL) project.
This project, a crucial part of Nigeria’s “Decade of Gas” initiative, is set to harness Nigeria’s vast gas reserves for industrial growth and economic development.
Speaking at the signing ceremony, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, acknowledged the efforts of NNPC and International Oil Companies (IOCs) like Shell, TotalEnergies and Eni in making the agreement a reality after more than a decade of planning and negotiations.
Ekpo described the signing as a significant milestone but emphasised that it was only one step in the journey to realising the full potential of the Brass Methanol Project.
“It is my expectation that within the shortest possible time, the BFPCL and its partners will achieve financial closure and commence actual construction,” Ekpo stated.
He highlighted the project’s potential to attract Foreign Direct Investment (FDI) and create thousands of jobs in the Niger Delta.
Permanent Secretary of the ministry, Nicholas Agbo Ella, said the agreement is part of Nigeria’s “Decade of Gas” initiative, noting that the project would reduce fertilizer imports by 30 per cent, saving Nigeria $200 million yearly in foreign exchange, and contributing $600 million to the Gross Domestic Product with a broader economic impact of $2 billion.
The project is expected to create over 5,000 direct and 35,000 indirect jobs, particularly benefiting the Niger Delta region and supporting Nigeria’s zero-flaring commitment by 2030.
The GSPA marks a critical achievement under Nigeria’s Decade of Gas initiative, launched to fully utilise the country’s gas resources for industrialisation and sustainable development. NNPC and its partners believe that the Brass Fertilizer Project would significantly advance Nigeria’s gas infrastructure and strengthen its position as a major player in the global gas market.
The signing ceremony was attended by top industry leaders, including representatives from Shell, NNPC and the BFPCL, who all reaffirmed their commitment to making the project a reality.
NNPC’s representative, Executive Vice President, Upstream, Oritsemeyiwa Eyesan
commended the collaboration and expressed optimism for the project’s future, saying, “this signing marks the beginning of a new chapter in Nigeria’s journey towards a gas-powered economy.”
Managing Director of BFPCL, Ben Okoye, emphasised the importance of attracting investment to develop Nigeria’s vast gas reserves.
While this resource is significant, Okoye said it must be monetised or else it risks becoming obsolete as global energy demands evolve.
He reassured that funding for the gas plant and pipeline was already secured, marking a crucial first step in the project.
He stated that the signing of the agreement demonstrates strong support from partners, noting that other businesses are also seeking gas for their operations.
Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said with the signing of this Gas Sale Agreement (GSA), Nigeria now have access to over one billion cubic feet of gas per day this year alone.
This, he said, includes the contributions from the Seplat facility, the SPDC Joint Venture, and TotalEnergies Ubeta project.
“We expect two more sources to come online soon, and I’m confident we’ll surpass four billion cubic feet before the year ends.
I’m particularly excited about the upcoming OB3 project, which we will celebrate upon completion,” Ubong said.
