The Federal Government announced on Monday, that the Gas Supply and Purchase Agreement to support the Final Investment Decision for the $3.8bn Brass methanol project is to be executed in May 2024.

The Brass methanol project can be seen as a major industrial project being built in Bayelsa State to produce methanol, a key industrial chemical, using natural gas resources. Nigeria currently imports all its methanol.

Located in Brass Island, Bayelsa, the facility is to have a capacity of 10,000 tonnes of methanol per day when completed, as it is still under construction and expected to be operational this year

The $3.8bn will create up to 15,000 jobs during construction and boost the Nigerian economy by reducing reliance on imports.

This project is a joint venture between DSV Engineering Limited, the Nigerian National Petroleum Company Limited, and the Nigerian Content Development & Monitoring Board.

Ekperikpe Ekpo, the Minister of State Petroleum Resources (Gas), declared the execution date for the gas supply agreement in Abuja on Wednesday after a meeting with key stakeholders of the project in his office.

Ekpo, in a statement issued by his media aide, Louis Ibah, said the meeting was to confirm adequate gas supply to the Brass methanol project by the NNPC/Shell/TotalEnergies/NAOC Joint Venture.

He said the meeting was to also determine the next steps to conclude and execute the GSPA and mature the phase-2 of gas supply to the project.

Present at the meeting were the Head of Joint Venture, Investment Management, NNPC Upstream Investment Management Services, Mr Olanrewaju Igandan; and Deputy Managing Director, Nigerian Agip Oil Company, Mr Richard Orianzi.

The Managing Director, Shell Petroleum Development Company Nigeria, Mr Osagie Okunbor; Managing Director of Brass Fertiliser and Petrochemical Ltd, Mr Ben Okoye, among others.

Ekpo informed the gathering of President Bola Tinubu’s strong interest in resolving issues relating to gas supply to the Brass methanol project.

“Mr President is very passionate about this project and wants something positive to happen in respect of the Brass methanol project before the end of May this year,” Ekpo said.

The Brass methanol project is sponsored by Brass Fertiliser & Petrochemical Company Limited and it is made up of a gas processing plant, a methanol production and refining plant, product export facilities, among others.

At the end of the meeting, Ekpo also revealed that he had successfully resolved the GSPA issue and that it would be executed by May 2024.

“The NNPC/SPDC JV partners are now fully committed to uninterrupted gas supply for the development of the Brass methanol project,” the gas minister stated.