The federal government is set to sign the Gas Supply and Purchase Agreement (GSPA) for the $3.8 billion Brass methanol plant by May 2024.
This was disclosed yesterday by the State Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, during a meeting with important project stakeholders at his Abuja office.
The purpose of the meeting was to ensure that the NNPC/Shell/TotalEnergies/NAOC Joint Venture (JV) is providing an adequate gas supply to the project. It also aimed to decide on the next necessary step for the completion and execution of the GSPA and the maturation of the project’s phase two gas supply.
During the discussion, Ekpo apprised officials of President Bola Tinubu’s desire to address concerns regarding the project’s gas supply. According to him, the President is fervent about the speedy take-off of the project to attract the much-needed foreign direct investment and the ensuing economic benefits for the nation.
“The President is very passionate about this project and wants something positive to happen before the end of May this year,” Ekpo stated.
At the end of the meeting, Ekpo declared that he had effectively settled the GSPA issue and that the NNPC/SPDC JV partners were now completely committed to a continuous gas supply for the project’s development. He said this arrangement would be signed by May.
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The brass methanol plant, situated at Brass Island, Bayelsa, is currently under construction but is expected to commence operation this year. When completed, it will have a daily capacity of 10,000 tonnes of methanol.
The project is sponsored by Brass Fertiliser & Petrochemical Company Limited and comprises of a gas processing plant, a methanol production and refining plant, and product export facilities.
By lowering dependency on imports, the $3.8 billion project is expected to enhance Nigeria’s economy and generate up to 15,000 jobs during construction.
DSV Engineering Limited, the Nigerian National Petroleum Company Limited, and the Nigerian Content Development & Monitoring Board are partners in this project.
