Landmark Gas Sales Agreement Signed for Brass Fertilizer and Petrochemical Project
After nearly a decade of overcoming complex challenges, a historic Gas Sales and Purchase Agreement (GSPA) has been signed for the Brass Fertilizer and Petrochemical Project. The agreement, which was finalized on Friday, marks a crucial milestone that sets the stage for the project’s financial close and the commencement of construction.
The Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, announced this significant development on X (formerly Twitter) on Saturday. The GSPA is a collaboration involving major industry players, including the Nigerian National Petroleum Company (NNPC) Ltd, Shell Petroleum Development Company (SPDC), TotalEnergies Ltd, and Eni. Under the agreement, these joint venture partners have committed to supplying the Brass Fertilizer and Petrochemical Company Ltd with 270 million standard cubic feet of gas per day (MMscfd)—the largest domestic gas offtake in Nigeria’s history.
The project is projected to generate around $1.5 billion annually from the export of fertilizers, petrochemicals, and gas-based products, providing a significant boost to Nigeria’s economy. It is expected to reduce the country’s fertilizer imports by 30%, saving $200 million annually in foreign exchange, and contribute approximately $600 million each year to Nigeria’s GDP.
In addition to economic gains, the project promises substantial job creation, with more than 5,000 direct jobs and 35,000 indirect jobs anticipated. This will provide a significant uplift to the Niger Delta region, offering new economic opportunities for local communities.
This agreement also underscores Nigeria’s commitment to creating a business-friendly environment and attracting foreign investment. The federal government, led by President Bola Tinubu, has been instrumental in advancing the project, securing crucial partnerships to reach this stage.
Minister Ekpo emphasized the transformative impact of the project, saying, “Let me state that this project is expected to generate over $1.5 billion annually from the export of fertilizers, petrochemicals, and gas-based products, directly benefiting our economy. It will also reduce fertilizer imports by 30%, saving the country $200 million annually in foreign exchange, and contribute $600 million annually to our GDP.”
He added, “More importantly, the project will create over 5,000 direct jobs and 35,000 indirect jobs, uplifting livelihoods, especially in the Niger Delta region. Without a 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.”
The signing of the GSPA highlights the value of strategic collaboration in achieving Nigeria’s energy goals and demonstrates the potential for transformative projects in the region. Minister Ekpo called on stakeholders to stay committed to the project, ensuring that financial close and construction proceed without delays.
