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FG, Shell sign gas supply deal for $3.8bn Brass methanol project

FG, Shell sign gas supply deal for $3.8bn Brass methanol project
April 18
15:36 2024

The federal government says it has struck a deal for Shell to supply gas to its proposed $3.8 billion Brass methanol facility.

Ekperikpe Ekpo, minister of state for petroleum resources (gas), announced on Wednesday after a meeting held with stakeholders of the project in Abuja.

Located on Brass Island in Bayelsa state, the project is sponsored by Brass Fertilizer & Petrochemical Company Limited (BFPCL).

The project is made up of a gas processing plant, methanol production and refining plant, and product export facilities, among others.

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The gas supply and purchase agreement (GSPA), according to Ekpo, aims to support the final investment decision (FID) for the brass methanol project, which will be executed by May.

The meeting, he said, was to confirm adequate gas supply to the brass methanol project by a joint venture (JV) operated by Nigerian National Petroleum Company, Shell, TotalEnergies, and Nigerian Agip (NAOC), as well as determine the next steps to conclude and execute the GSPA and mature the phase 2 of gas supply to the project.

Ekpo informed the officials of President Bola Tinubu’s keen interest in resolving issues concerning gas supply to the brass methanol project.

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“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 said.

The minister said he had successfully addressed the GSPA issue as the deal would be finalised by May. 

Ekpo said the NNPC/SPDC JV partners are now fully committed to providing uninterrupted gas supply for the development of the project.

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