The Federal Government announced recently that the Gas Supply and Purchase Agreement to support the Final Investment Decision for the $3.8bn Brass methanol project would be implemented in May 2024.
The Brass methanol project in Bayelsa State, which is designed for the production of Methanol as a key chemical by use of gas resources, has become one of the most important industry projects to be built there. All of Nigeria’s methanol is imported at the moment, according to The Punch.
This disclosure was made by the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja on Wednesday after a meeting with key stakeholders of the project in his office.
In a statement issued by his media aide, Louis Ibah, the Minister said the meeting was to confirm adequate gas supply to the Brass methanol project by the NNPC/Shell/TotalEnergies/NAOC Joint Venture.
The facility is situated on Brass Island in Bayelsa State and can produce 10,000 tonnes of methanol each day when it is finished and is expected to start operations this year.
This project is expected to provide about 15,000 jobs during construction, to enhance the Nigerian economy by cutting down the over-reliance on importation.
The $3.8bn Brass methanol project is a joint venture between DSV Engineering Limited, Nigeria’s National Petroleum Company Ltd, and the Nigerian Content Development and Monitoring Board.
He said the meeting would also decide on the next steps to conclude and implement the GSPA2 and complete the gas supply phase of the project.
The Head of Joint Venture Investment Management and NNPC Upstream Investment Management Services Mr Olanrewaju Igandan, and Nigerian Agip Oil Company’s Deputy Managing Director, Richard Orianzi; the Managing Director, Shell Petroleum Development Company Nigeria, Mr Osagie Okunbor; Managing Director of Brass Fertiliser and Petrochemical Ltd, Mr Ben Okoye, were some of the participants in the meeting.
Ekpo declared in the meeting that President Bola Tinubu has a keen interest in resolving problems related to gas supply to the Brass methanol project.
Ekpo said, “Mr President is very passionate about this project and wants something positive to happen in respect of the Brass methanol project before the end of May this year.”
Ekpo noted that the GSPA issue had been successfully resolved and that it would be executed by May this year.
“The NNPC/SPDC JV partners are now fully committed to uninterrupted gas supply for the development of the Brass methanol project,” the minister stated.
Brass Fertiliser & Petrochemical Company Limited is the sponsor of the Brass Methanol Project, which consists of a gas processing plant, a methanol production and refining plant, and a product export facility, among others.
