The federal government on Friday, October 11, signed a Gas Sales and Purchase Agreement (GSPA) with Shell Petroleum Development Company (SDPC) JV for the $3.3 billion Brass Fertilizer and Petrochemical Company Ltd. (BFPCL).
Speaking at the signing ceremony in Abuja, the Minister of State for Petroleum Resources (Gas) Hon. Ekperikpe Ekpo urged all the parties to sustain the steadfastness with which they overcame the hurdles of making the signing for the project a reality.
He said, “While this Signing Ceremony is a significant milestone in the development of the US$3.3Billion Brass Methanol Project, it is one more step in the journey to making the project a reality, and I urge all Parties to continue in the same steadfastness that has enabled us to surmount all previous hurdles.”
He acknowledged that SPDC JV Partners, ably led by the Nigerian National Petroleum Company Limited (NNPCL) with the unwavering support and commitment of the IOCs (SPDC, TotalEnergies Ltd., and Eni) led to the signing the GSPA signing after a decade-long journey.
The JV partners are taking an estimated 270mscf of gas per day to the fertilizer plant.
The minister said he expected that within the shortest possible, BFPCL and its Partners will achieve Financial Close and commence actual construction of the project.
Ekpo added that the project is also expected “to bring in much-needed Foreign Direct Investment (FDI) and create thousands of jobs for our teeming population while changing the face and fortunes of the Host State and Community for good.
Meanwhile, the Permanent Secretary, Ambassador Nicholas Ella, said the Brass Fertilizer and Petrochemical Project, valued at $3.5 billion, is set to generate more than $1.5 billion annually from exports of fertilizers, petrochemicals, and other gas-based products.
The agreement, he said, is a key achievement within the Decade of Gas initiative, launched by President Ahmed Bola Tinubu’s administration, which aims to position gas as the cornerstone of Nigeria’s industrialization and energy security.
He said: “In addition to boosting exports, the project will reduce fertilizer imports by 30%, saving Nigeria approximately $200 million in foreign exchange annually.
“Furthermore, it is projected to contribute around $600 million annually to Nigeria’s GDP, with a broader economic impact of up to $2 billion per year, thanks to the growth it will spur in related industries.
“The project will also create over 5,000 direct jobs and 35,000 indirect jobs, significantly improving the livelihoods of many Nigerians, particularly in the Niger Delta region.”
The Permanent Secretary said the initiative is closely aligned with Nigeria’s commitment to achieving zero routine flaring by 2030 and advancing the goals of the National Gas Policy by fully utilizing its gas resources for sustainable development.
He commended the SPDC Joint Venture partners—Shell, TotalEnergies, and Eni—who have collectively invested over $15 billion in Nigeria’s gas infrastructure over the past decade.
SOURCE: thenigerialawyer.com
