IN a significant stride towards advancing Nigeria’s energy ambitions, the Minister of State for Gas, Ekperikpe Ekpo, declared a pivotal agreement with Shell to provide gas to the proposed $3.8bn Brass methanol facility. The breakthrough resolves a critical hurdle in reaching a final investment decision on the project, signalling a boon for Nigeria’s energy sector.
Nigeria, home to Africa’s largest natural gas reserves exceeding 200 trillion cubic feet, has long grappled with capital constraints and infrastructural limitations hindering the exploitation of this valuable resource. However, the recent deal with Shell promises to mitigate these challenges and unlock the nation’s gas potential.
Minister Ekperikpe Ekpo revealed in a statement that the Gas Supply and Purchase Agreement (GSPA), deemed indispensable for the Brass methanol venture, is slated for execution next month. This milestone follows fruitful negotiations with Shell’s Nigeria CEO and other key executives, underscoring the commitment of all stakeholders involved.
The GSPA is poised to secure a sustained gas supply from a Shell-operated joint venture, vital for powering the methanol production facility earmarked for construction on Brass Island in Bayelsa state, renowned for its oil-rich coastal terrain.
‘The NNPC/Shell joint venture partners are now fully committed to uninterrupted gas supply for the development of the Brass Methanol project,’ affirmed Minister Ekpo, emphasising the collaborative effort driving the initiative forward.
Moreover, Minister Ekpo highlighted the keen interest of Nigeria’s leadership in expediting progress on the Brass Methanol project. ‘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 affirmed, signalling the high-level support for the venture.
The ambitious project encompasses the establishment of a gas processing plant, a methanol production and refining facility, and infrastructure for product exportation, promising to bolster Nigeria’s position in the global energy landscape.
With the gas supply deal secured, Nigeria inches closer to realising its energy aspirations, leveraging its abundant natural resources to drive economic growth and industrial development.