Shell Agrees to Supply Methanol to $3.8 Billion Brass Methanol Plant in Bayelsa
In a crucial development for Nigeria’s energy sector, Ekperikpe Ekpo, the Minister of State for Gas, announced that the Federal government has secured an agreement with Shell (SHEL.L) to provide gas supply to its proposed $3.8 billion methanol plant in Brass, Bayelsa State. This agreement marks a significant milestone in the project’s progress, clearing the way for the final investment decision.
Ekpo revealed that after successful negotiations with Shell Nigeria’s CEO and executives from other participating companies, the Gas Supply and Purchase Agreement (GSPA) crucial for the Brass methanol project will be formally signed next month. The GSPA secures a long-term gas supply arrangement with a Shell-led joint venture, ensuring uninterrupted support for the methanol production plant slated for construction on Brass Island in Bayelsa State.
“The NNPC/Shell joint venture partners are now fully committed to uninterrupted gas supply for the development of the Brass Methanol project,” stated Ekpo, emphasizing President’s keen interest in the project’s success by aiming for significant progress by May’s end.
The ambitious project encompasses a gas processing plant, methanol production and refining facilities, and infrastructure for exporting products. Set to commence operations this year, the Brass Methanol Plant, located on Brass Island, will boast a daily production capacity of 10,000 tonnes of methanol.
Developed by Brass Fertiliser & Petrochemical Company Limited, the project aims to curb Nigeria’s dependence on imported methanol, bolster the economy, and generate up to 15,000 jobs during its construction phase. Partners in this endeavor include DSV Engineering Limited, the Nigerian National Petroleum Company Limited, and the Nigerian Content Development & Monitoring Board.
With this agreement in place, Nigeria moves closer to realizing its goal of achieving energy self-sufficiency and fostering economic growth through strategic initiatives in the gas and petrochemical sectors.
