FG to Execute Gas Supply Agreement for $3.8bn Brass Methanol Project

The Federal Government of Nigeria has announced plans to execute the Gas Supply and Purchase Agreement in May 2024 to support the Final Investment Decision for the $3.8 billion Brass methanol project. This significant industrial endeavor, located in Bayelsa State, aims to produce methanol, a vital industrial chemical, utilizing the country’s natural gas resources.

Currently, Nigeria imports all its methanol, making the Brass methanol project a pivotal step towards reducing the nation’s reliance on imports. Situated on Brass Island, Bayelsa, the facility, once completed, will have a capacity of producing 10,000 tonnes of methanol per day. The project, still under construction, is expected to become operational this year, contributing significantly to the nation’s economy.

The $3.8 billion investment is anticipated to create up to 15,000 jobs during the construction phase, offering a boost to employment opportunities in the region. Moreover, the project aligns with the government’s agenda to enhance local content development and stimulate economic growth by leveraging domestic resources.

The Brass methanol project is a joint venture involving DSV Engineering Limited, the Nigerian National Petroleum Company Limited, and the Nigerian Content Development & Monitoring Board. This collaborative effort underscores the commitment of both public and private entities to drive industrialization and innovation in the country.

The announcement of the execution date for the gas supply agreement was made by the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, during a meeting with key stakeholders of the project in Abuja. The meeting aimed to ensure the provision of adequate gas supply to support the Brass methanol project, with the NNPC/Shell/TotalEnergies/NAOC Joint Venture playing a crucial role in this regard.

As Nigeria moves forward with this ambitious industrial initiative, it marks a significant milestone in the country’s journey towards self-sufficiency and economic diversification. The execution of the Gas Supply and Purchase Agreement underscores the government’s commitment to fostering investment in critical sectors and harnessing the nation’s natural resources for sustainable development.

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