FG Secures Shell Gas Deal for $3.8 Billion Brass Methanol Plant

Ekperikpe Ekpo, State Minister of Petroleum Resources (Gas), announced yesterday that the federal government has finalized an agreement with Shell to provide gas for the proposed Brass methanol plant, estimated at $3.8 billion.

Ekpo disclosed that the Gas Supply and Purchase Agreement (GSPA) crucial to the project will be signed in May 2024 after fruitful discussions with Shell’s Nigeria CEO and other key executives.

The GSPA will ensure a long-term gas supply from a Shell-led joint venture for the methanol plant, located on Brass Island in Bayelsa state.

President Bola Tinubu’s keen interest in addressing gas supply concerns for the project was also highlighted during the meeting, emphasizing the President’s dedication to its swift commencement to attract foreign investment and foster economic growth.

Expected to commence operations this year, the Brass methanol plant, with a daily capacity of 10,000 tonnes of methanol, aims to reduce import dependency and create up to 15,000 jobs during construction, thus enhancing Nigeria’s economy.