Nigeria has recently made a significant stride in its efforts to harness its abundant natural gas resources through a partnership with Shell in a $3.8 billion methanol deal.
With Africa’s largest natural gas reserves at its disposal, Nigeria has long been seeking ways to capitalize on this valuable resource but has faced challenges due to capital constraints and infrastructure limitations.
The latest development in the form of a Gas Supply and Purchase Agreement (GSPA) with Shell represents a major breakthrough for the proposed Brass methanol facility.
The agreement, set to be finalized next month, will ensure a steady supply of gas from a Shell-operated joint venture to fuel the methanol production plant on Brass Island in Bayelsa state.
Minister Ekperikpe Ekpo emphasized the significance of this agreement, highlighting the commitment of the NNPC/Shell joint venture partners to support the development of the Brass Methanol project.
The Brass methanol project is a comprehensive endeavor that includes a gas processing plant, a methanol production and refining site, and facilities for exporting the end product.
This integrated approach underscores the potential impact of the project on Nigeria’s economy and energy sector.
