The Nigerian National Petroleum Company (NNPC) Limited signed a partnership with Shell, TotalEnergies, and Agip, to complete a historic agreement to supply gas to a $3.3 billion methanol plant being developed by Brass Fertilizer & Petrochemical Company Limited in Bayelsa State.
Ekperikpe Ekpo, the minister of state for petroleum (Gas) disclosed this in a statement on Friday after signing the sales-and-purchase agreement.
According to Ekpo, the agreement is a significant effort towards harnessing the review of Nigeria‘s vast gas reserves.
“A significant milestone in ongoing efforts to monetize Nigeria’s vast gas reserves.
“The accord will enable Brass and its partners to proceed with the construction of the $3.3 billion project,” he said.
Accordingly, the state-owned oil company and its partners are expected to supply approximately 270 million standard cubic feet of gas per day to the project, situated on Brass Island in Bayelsa state, southern Nigeria
The Minister stressed that the Nigerian government anticipates the project will generate over $1.5 billion annually from exports of fertilizers, petrochemicals, and other gas-derived products.
The development comes as the Nigerian government through its Presidential Committee on Compressed Natural Gas Initiative has commenced the expansion of CNG conversion across the country to reduce dependence on Premium Motor Spirit (petrol).
