Minister of State Petroleum Resources, (Gas), Ekperikpe Ekpo, has stated that the Brass Fertiliser and Methanol Project will generate not less than $1.5 billion annually from the export of fertilisers, petrochemicals, and gas-based products.
The minister added that the project will also reduce fertilizer imports by 30%, saving the Nigeria about $200 million annually in foreign exchange, and contribute $600 million annually to the GDP.
Join our WhatsApp ChannelPrime Business Africa reports that the Federal Government through the Nigerian National Petroleum Company Limited (NNPCL), has signed Gas Sales and Purchase Agreement (GSPA) for supply of gas to the Brass Fertiliser and Petrochemical Project.
The minister who spoke at the gas sales agreement signing ceremony in Bayelsa State on Friday, 11th October, described it as a “landmark agreement”, coming nine years after the project estimated at $3.3 billion was first announced.
In a statement via his X handle, the minister stated that the agreement involves collaboration between NNPCL, and its joint venture partners – Shell Petroleum Development Company (SPDC), TotalEnergies Ltd, and Eni, who would supply 270 million standard cubic feet of gas daily (270MMscfd) to Brass Fertiliser and Petrochemical Company.
According to him, the agreement marks a pivotal moment for the Brass Fertiliser and Methanol Project, as “it paves the way for financial close and the commencement of construction.”
Highlighting the benefits of the project to Nigeria’s economy, Ekperikpe said: “Let me state that this project is expected to generate over $1.5 billion annually from the export of fertilisers, petrochemicals, and gas-based products, directly benefiting our economy.
“It will also reduce fertiliser imports by 30%, saving the country $200 million annually in foreign exchange, and contribute $600 million annually to our GDP.”
He added that the project will create over 5,000 direct jobs and 35,000 indirect jobs, improving the livelihood of many people, especially in the Niger Delta region.
“Without doubt, this project will transform the host Bayelsa State, offering economic benefits, jobs, and development for the local community, while also enhancing Nigeria’s energy security.”
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He said the project also highlights the growing business-friendly environment and the federal government’s drive to attract foreign investment.
While thanking President Tinubu for his guidance and steadfast support that was instrumental in achieving the milestone, Ekperikpo averred that the success of the project underscores the importance of strategic collaboration in achieving the country’s energy goals.
He urged all stakeholders in the project to remain committed in ensuring that it commences without delay.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
