AGS NEWS – The Federal Government revealed on Monday its intention to execute the Gas Supply and Purchase Agreement (GSPA) in May 2024, supporting the Final Investment Decision for the $3.8 billion Brass methanol project.

This significant industrial initiative, located in Bayelsa State, aims to produce methanol using Nigeria’s natural gas resources, thus reducing the country’s reliance on methanol imports.

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Expected to be operational this year, the Brass methanol project, situated on Brass Island, Bayelsa, will have a capacity of 10,000 tonnes of methanol per day upon completion.

The project is anticipated to generate up to 15,000 jobs during its construction phase, contributing to the nation’s economic growth.

A collaborative effort between DSV Engineering Limited, the Nigerian National Petroleum Company Limited, and the Nigerian Content Development & Monitoring Board, the project aims to bolster Nigeria’s economy by enhancing local content participation and decreasing import dependency.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed the execution date for the gas supply agreement during a meeting with key stakeholders in Abuja on Wednesday.

The meeting, attended by prominent figures such as representatives from NNPC, Shell, TotalEnergies, and NAOC, focused on ensuring adequate gas supply to the Brass methanol project.

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Ekpo emphasized President Bola Tinubu’s keen interest in resolving gas supply issues to expedite the commencement of the project, underscoring the potential economic benefits it could bring through Foreign Direct Investment.

Following the meeting, Ekpo announced the successful resolution of the GSPA matter, with commitments from NNPC/SPDC JV partners for uninterrupted gas supply to the Brass methanol project.