Nigeria has taken a significant step towards harnessing its vast gas reserves by signing a deal with joint venture partners. The agreement, announced on Friday, aims to supply gas to a proposed $3.5 billion fertilizer and petrochemical plant located in Brass, Bayelsa State.
Under the terms of the agreement, major joint venture partners Shell, TotalEnergies, and Eni will deliver approximately 270 million standard cubic feet of gas per day. This supply is crucial for the Brass Fertilizer and Petrochemical Project, which is expected to generate at least $1.5 billion annually from the export of petrochemicals and other gas-based products.
Nicholas Agbo Ella, the Permanent Secretary of the Petroleum Ministry, stated that this Gas Sale and Purchase Agreement marks a significant milestone in Nigeria’s efforts to monetize its vast gas reserves. Ella emphasized that the agreement represents a key component of the country’s strategy to increase gas production for domestic and export purposes.
As Africa’s leading energy producer, Nigeria possesses the continent’s largest gas reserves, estimated at over 200 trillion cubic feet. The country aims to boost gas supply to industries, power plants, and exports while eliminating routine gas flaring by the year 2030.
Ella further noted that the Brass project would help reduce fertilizer imports by 30%. This reduction could save Nigeria approximately $200 million in foreign exchange each year, enhancing the nation’s economic stability.
The development of the Brass Fertilizer and Petrochemical Project reflects Nigeria’s commitment to maximizing the potential of its natural resources. The initiative is expected to create jobs and stimulate economic growth in the region.
