By Adewale Sanyaolu
Barring any last minute change, the federal government has concluded plans to sign the Gas Supply and Purchase Agreement (GSPA) for the $3.8 billion Brass methanol project by next month.
Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, announced this yesterday after a meeting held with key stakeholders of the project in his Abuja office.
The methanol project, located on Brass Island in Bayelsa State, is promoted by Brass Fertilizer and Petrochemical Company Limited (BFPCL) and is made up of a gas processing plant, methanol production and refining plant, product export facilities, among others.
Ekpo at the meeting, informed officials of President Bola Tinubu’s interest in resolving issues relating to gas supply to the project. He said the President is passionate about the speedy kick off of the project so that it could bring in the much needed FDI with attendant economic benefits to the country.
“Mr. President is very passionate about this project and wants something positive to happen before the end of May this year,” Ekpo said.
The meeting was to confirm adequate gas supply to the project by the NNPC/Shell/TotalEnergies/NAOC Joint Venture (JV), as well as determine the next step required to conclude and execute the GSPA and mature the phase two of gas supply to the project. At the end of the meeting, Ekpo announced he had successfully resolved the GSPA issue as the deal would be sealed by May that the NNPC/SPDC JV partners are now fully committed to uninterrupted gas supply for the development of the project.
NCDMB, NNPC and DSV Engineering, had in January 2021 signed the final investment decision (FID) for construction of the methanol plant and committed $670 million equity investment.
NCDMB said that aside the equity investment, China Exim Bank, African Development Bank (AfDB), international commercial banks, regional banks and African institutions would be expected to raise 70 percent of the project cost. The project is a 10,000 tonnes per day methanol plant and a 500 million standard cubic feet per day gas processing plant in Odeama, Bayelsa.
The first agreement signed was between BFPCL, DSV Engineering, NNPC and NCDMB Capacity Development Intervention Company Limited by Guarantee. NCDMB had confirmed that it has subscribed to the terms and conditions contained in the company’s share subscription agreement. The other agreement signed was the share subscription agreement between BFPCL, DSV Engineering and NCDMB Capacity Development Intervention Company Limited by Guarantee.
According to the statement, this agreement confirms the allotment of 18 per cent of the authorised share capital of BFPCL to NCDMB.
The immediate past Executive Secretary of NCDMB, had said the 10,000 tonnes/day methanol plant provides opportunities to add value in-country and further diversify the utilization of Nigeria’s gas resources.
Wabote said upon the project’s completion, it will bring the country onto the world map as one of the top 10 producers of methanol.
He also said the project would create 15,000 jobs during the construction stage and 5000 jobs during the operations phase.