Joint venture partners including Shell Petroleum Development Company (SPDC), NNPC Limited, TotalEnergies, and Eni have signed a Gas Sales and Purchase Agreement (GSPA) for the $3.5 billion Brass Fertilizer and Petrochemical project in Bayelsa State.
The agreement was signed under the supervision of the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, and it enables the Brass Fertilizer and Petrochemical Company Limited (BFPCL) and its partners to achieve financial closure for the Brass Fertilizer and Methanol Project.
Under the agreement, the oil companies are set to supply 270 million standard cubic feet of gas per day (270MMscfd) to BFPCL, marking the largest single GSPA to any domestic gas offtaker in Nigeria. This project is projected to generate over $1.5 billion annually from the export of fertilizers, petrochemicals, and other gas-based products.
In his remarks at the event, Minister Ekpo praised President Bola Tinubu’s support and guidance, stating, “Achieving this GSPA showcases Nigeria’s business-friendly environment and the government’s commitment to investor-friendly policies.” He urged all parties to stay committed, expressing optimism that BFPCL and its partners would achieve financial closure and commence construction soon, which would attract much-needed Foreign Direct Investment (FDI) and create thousands of jobs.
Permanent Secretary of the Ministry of Petroleum Resources, Ambassador Nicholas Ella Agbo, described the GSPA as a significant milestone in monetizing Nigeria’s extensive gas reserves, which currently exceed 209 trillion cubic feet.
Agbo noted that the project is expected to reduce fertilizer imports by 30%, saving Nigeria around $200 million in foreign exchange annually. Additionally, it will contribute approximately $600 million to Nigeria’s GDP and create over 5,000 direct jobs and 35,000 indirect jobs, significantly enhancing the livelihoods of many, particularly in the Niger Delta region.
Dr. Ben Okoye, Managing Director of BFPCL, commended President Tinubu and Minister Ekpo for their roles in finalizing the GSPA. He emphasized the importance of unlocking Nigeria’s gas deposits promptly, citing the need to utilize gas before it becomes less relevant in the energy landscape.