Details as Nigeria Signs Multi-billion Dollars Deal with Shell
Nigeria has entered into a strategic partnership with Shell, agreeing to supply gas for a new $3.8 billion methanol facility planned on Brass Island in Bayelsa.
The Minister of State for Gas, Ekperikpe Ekpo, announced the significant progress towards finalizing the investment decision for the project last Thursday.
Boasting the largest natural gas reserves in Africa, with over 200 trillion cubic feet, Nigeria faces considerable challenges in leveraging this resource due to financial constraints and insufficient infrastructure. However, the upcoming Gas Supply and Purchase Agreement (GSPA), set to be signed next month, marks a crucial step in advancing the Brass methanol project.
The planned facility is a part of a broader initiative that includes a gas processing plant and methanol production and refining operations, along with the necessary export infrastructure. The NNPC/Shell joint venture is committed to ensuring a stable gas supply for the methanol facility’s development.
The Nigerian government, under the guidance of President Tinubu, is highly supportive of this project.