Yemisi Izuora
Nigeria is fast tracking execution of the Brass Fertilizer and Petrochemical Company Limited (BFPCL) project which has been estimated not only to generate job opportunities but to increase the country’s foreign exchange earnings.
The project when operational according to the Permanent Secretary in the Ministry of Petroleum Resources, Amb. Nicholas Ella, would generate more than $1.5 billion annually from exports of fertilisers, petrochemicals and other gas-based products.
The SPDC Joint Venture partners had on Friday, October 11, 2024, signed a Gas Sales and Purchase Agreement (GSPA) for the $3.5 billion project.
The SPDC JV partners, comprising NNPC Ltd, Shell Petroleum Development Company (SPDC), TotalEnergies Ltd. and Eni would supply 270 million standard cubic feet of gas daily (270MMscfd), to develop the $3.5 billion project in Bayelsa State.
The BFPCL is the largest single GSPA to any domestic gas offtaker in Nigeria.
The signing of the agreement between the SPDC JV partners and BFPCL was supervised by the Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo.
Expo said it was expected that, within the shortest possible time, the BFPCL and its partners would achieve Financial Close and commence actual construction of the methanol project.
He said the project would spur needed Foreign Direct Investment (FDI) and create thousands of jobs for the teeming population, while changing the fortunes of the host state and communities.
The Minister urged all parties to operationalise the GSPA and realise the Brass Methanol Project to inspire more of such projects towards cementing Nigeria’s position as the Gas Processing Hub for Africa.
Ella, further said, “This agreement represents a significant milestone in our ongoing efforts to monetise Nigeria’s vast gas reserves, which currently stand at over 209 trillion cubic feet (tcf).
“In addition to boosting exports, the project will reduce fertiliser imports by 30 per cent, saving Nigeria approximately $200 million in foreign exchange annually,” he said.
Ella said it was projected to contribute around $600 million annually to Nigeria’s Gross Domestic Product (GDP), with a broader economic impact of up to $2 billion per year and growth in related industries.
“This 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 utilising our gas resources for sustainable development,” he said.
Bayelsa State Governor, Douye Diri, who expressed satisfaction with the project, said the State was open for investment and ready to ensure that youth were meaningfully engaged.
Represented by Ebieri Jones, Commissioner for Trade, Industry and Investment, Diri urged prospective investors to tap into its vast potential and peaceful business environment.
Also speaking, the Managing Director of the BFPCL, Dr Ben Okoye, emphasised the need to unlock Nigeria’s gas deposits promptly, citing the urgency to utilise gas before it becomes less relevant.
The NNPC Executive Vice President, Upstream, Mrs Oritsemeyiwa Eyesan, while commending the president on the executive order, an enabler for the success of the project, said the parties were aligned and ready to execute the project.
The partners also expressed readiness in implementing the project and thanked the Minister for his pivotal role in breaking the impasse that delayed the signing of the agreement since 2015.
The event was attended by representatives of the partners including Mr Osagie Okunbor, Managing Director, SPDC; Mr Abiodun Afolabi, Executive Director, Strategy and Business, TotalEnergies; Mr Fabrizio Bolondi, Vice Chairman/Managing Director Eni; and Mr Ed Ubong, Coordinating Director, Decade of Gas.