Joint Venture partners including 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.
A statement by the Ministry of Petroleum Resources on Friday said the signing of the agreement, supervised by the Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, paves the way for the Brass Fertilizer and Petrochemical Company Limited (BFPCL) and its partners to achieve financial close for the Brass Fertilizer and Methanol Project.
The oil companies are expected to supply 270 million standard cubic feet of gas per day (270MMscfd) to BFPCL, the largest single GSPA to any domestic gas offtaker in Nigeria.
This project is expected to generate over $1.5 billion annually from exports of fertilizers, petrochemicals, and other gas-based products.
Ekpo in his speech at the event praised President Bola Tinubu’s steadfast support and guidance, saying, “Achieving this GSPA showcases Nigeria’s business-friendly environment and the government’s commitment to investor-friendly policies.”
The Gas Minister urged all parties to maintain their steadfastness, expecting BFPCL and its partners to achieve financial closure and commence construction soon to “bring in much needed Foreign Direct Investment (FDI) and create thousands of jobs for our teeming population, while changing the face and fortunes of the host Bayelsa State and community for good.”
Permanent Secretary, Ministry of Petroleum Resources, Ambassador Nicholas Ella Agbo described the GSPA as a significant milestone in monetizing Nigeria’s vast gas reserves, currently over 209 trillion cubic feet.
“The project will reduce fertilizer imports by 30%, saving Nigeria approximately $200 million in foreign exchange annually, and contribute around $600 million annually to Nigeria’s GDP and create over 5,000 direct jobs and 35,000 indirect jobs significantly improving the livelihoods of many Nigerians, particularly in the Niger Delta region,” he said.
On his part, Managing Director of BFPCL, Dr. Ben Okoye, lauded President Tinubu and Ekpo for their roles in finalizing the GSPA. Okoye emphasized the need to unlock Nigeria’s gas deposits promptly, citing the urgency to utilize gas before it becomes less relevant.
Also, Bayelsa State Governor, Sen. Douye Diri, who welcomed the project, highlighted its potential to generate employment opportunities for the state’s youths and Nigeria at large.
Represented by Dr. Ebieri Jones, Commissioner for Trade, Industry and Investment, Diri invited prospective investors to tap into Bayelsa’s vast potential and peaceful disposition, dubbing it “investment heaven” for investors.
