The Federal Government of Nigeria has officially signed a landmark gas sales agreement to facilitate gas supply for the $3.3 billion Brass Fertilizer & Petrochemical Company Ltd. The agreement, executed by the Nigerian National Petroleum Company Limited (NNPCL), includes key partners Shell, TotalEnergies, and Agip.
During the signing ceremony at the Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo hailed the agreement as a “significant milestone” in Nigeria’s pursuit of monetizing its vast gas reserves. He stated, “This agreement marks a major step toward utilizing our abundant natural gas resources for rapid industrialization and economic growth.”
Ekpo urged stakeholders to maintain their determination in overcoming previous challenges, emphasizing the importance of achieving financial closure and starting construction on the project as soon as possible. “This signing is one more step in the journey to making the Brass Methanol Project a reality,” he added.
Upon completion, the Brass Fertilizer Project is expected to generate over $1.5 billion annually through the export of fertilizers, petrochemicals, and other gas-based products. Additionally, it aims to reduce Nigeria’s fertilizer imports by 30%, saving the nation approximately $200 million in foreign exchange each year.
The project is set to create over 5,000 direct jobs and 35,000 indirect jobs, significantly enhancing the livelihoods of many Nigerians, particularly in the Niger Delta region. Ambassador Nicholas Ella, Permanent Secretary of the Ministry of Petroleum Resources, noted that the project aligns with President Bola Tinubu’s Decade of Gas initiative, which aims to position gas as a cornerstone of Nigeria’s industrialization and energy security.
“It is projected to contribute around $600 million annually to Nigeria’s GDP, with a broader economic impact of up to $2 billion per year, thanks to the growth it will spur in related industries,” he remarked. Oritsemeyiwa Eyesan, Executive Vice President of Upstream NNPC, also emphasized the agreement’s significance in advancing plans for a 10,000-methanol plant in Nigeria, underscoring its potential to reshape the country’s energy landscape.
