The Federal Government has announced that the execution of the Gas Supply and Purchase Agreement to support the Final Investment Decision for the $3.8bn Brass methanol project has been fixed for May 2024.
The Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, announced the execution date for the gas supply agreement in Abuja on Wednesday after a meeting with key stakeholders of the project.
The Brass methanol project is a major industrial project located in Brass Island, Bayelsa. It is believed to have a capacity of producing 10,000 tonnes of methanol per day when completed.
Methanol is an important industrial chemical, using natural gas resources which Nigeria currently get through importation.
According to the minister, the $3.8bn project is to create up to 15,000 jobs during construction and is targeted at enhancing the Nigerian economy by reducing reliance on imports.
Speaking further, he said, the President was passionate about the kickstarting the project in no distant time so as to attract Foreign Direct Investment with huge economic benefits to the country.
“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.
He noted that the meeting was to also determine the next measures to conclude and execute the GSPA and mature the phase-2 of gas supply to the project.
However, at the end of the meeting, Ekpo announced he had successfully resolved the GSPA issue and that it would be executed by May this year.
“The NNPC/SPDC JV partners are now fully committed to uninterrupted gas supply for the development of the Brass methanol project,” the gas minister stated.
This project is a joint venture between the trio of DSV Engineering Limited, the Nigerian National Petroleum Company Limited, and the Nigerian Content Development & Monitoring Board.
It is sponsored by Brass Fertiliser & Petrochemical Company Limited.
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