FG Signs Landmark Gas Deal for $3.3bn Methanol Plant

The Federal Government has signed a gas sales and purchase agreement for the $3.3bn Brass Fertilizer and Petrochemical Company Limited.

The agreement, signed with Shell, TotalEnergies, and Agip, marks a crucial step towards monetizing Nigeria’s vast gas reserves and boosting the country’s industrialization efforts.

According to the Minister of State for Petroleum Resources, Ekperikpe Ekpo, the signing ceremony represents “a significant milestone in ongoing efforts to monetize Nigeria’s vast gas reserves.”

He emphasized that the agreement indicates a significant milestone in efforts to utilize the abundant natural gas resources for rapid industrialization and economic growth.

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The project, expected to generate over $1.5bn annually from exports of fertilizers, petrochemicals, and other gas-based products, will also create thousands of jobs and reduce fertilizer imports by 30%.

The agreement is a key achievement within the Decade of Gas initiative, launched by President Bola Tinubu’s administration, which aims to position gas as the cornerstone of Nigeria’s industrialization and energy security.

The Permanent Secretary, Ambassador Nicholas Ella, highlighted that the project will contribute around $600m annually to Nigeria’s GDP, with a broader economic impact of up to $2bn 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.

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The initiative is closely aligned with Nigeria’s commitment to achieving zero routine flaring by 2030 and advancing the goals of the National Gas Policy by fully utilizing its gas resources for sustainable development.

The Executive Vice President of Upstream NNPC, Oritsemeyiwa Eyesan, noted that the agreement will progress one of the vital boxes to achieve a 10,000-methanol plant in Nigeria.