Nigeria has finalised an agreement with Shell to provide gas supply for its proposed $3.8 billion Brass methanol facility, addressing a significant hurdle in reaching a final investment decision for the project, as stated by the Minister of State for Gas.
Despite having the largest natural gas reserves in Africa, Nigeria has faced challenges in monetising them due to infrastructure and capital limitations.
Minister Ekperikpe Ekpo announced that the crucial Gas Supply and Purchase Agreement (GSPA) for the Brass methanol project will be signed next month following successful negotiations with Shell’s Nigeria CEO and other company executives.
The GSPA guarantees a long-term gas supply from a Shell-operated joint venture for the construction of the methanol production facility on Brass Island in the oil-rich coastal Bayelsa state.
“The NNPC/Shell joint venture partners are now fully committed to uninterrupted gas supply for the development of the Brass Methanol project,” Ekpo said.
“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 project encompasses a gas processing plant, a methanol production and refining site, and facilities for exporting the products.