In a major boost to Nigeria’s gas sector, the Nigerian National Petroleum Company Limited (NNPCL), Shell, TotalEnergies, and Eni yesterday signed a landmark Gas Sales and Purchase Agreement (GSPA) to kickstart the $3.5 billion Brass Fertiliser and Petrochemical project in Bayelsa State. The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, supervised the agreement in a ceremony held in Abuja.

The agreement will see NNPC and its joint venture partners—Shell Petroleum Development Company (SPDC), TotalEnergies, and Eni—supply 270 million standard cubic feet of gas per day to the Brass Fertiliser and Petrochemical Company Limited (BFPCL). This is Nigeria’s largest single GSPA for any domestic gas off-taker.

Minister Ekpo hailed the agreement as a significant milestone in the development of Nigeria’s gas sector and a reflection of the country’s business-friendly environment. He expressed optimism that the project, which is expected to generate over $1.5 billion annually from the export of fertilisers, petrochemicals, and other gas-based products, would soon achieve financial closure and move into the construction phase.

“This signing ceremony is a major step towards realising the $3.3 billion Brass Methanol project, which will bring much-needed Foreign Direct Investment (FDI) into Nigeria and create thousands of jobs for our people,” Ekpo said.

The project is expected to boost Nigeria’s economic fortunes, contributing $600 million annually to the country’s Gross Domestic Product (GDP), with broader economic impacts estimated at $2 billion annually. Additionally, it will reduce fertiliser imports by 30%, saving the country approximately $200 million in foreign exchange annually.

In his remarks, Nicholas Ella, Permanent Secretary at the Ministry of Petroleum Resources, described the agreement as a critical move toward monetising Nigeria’s vast gas reserves, which stand at over 209 trillion cubic feet. He noted that the project will create over 5,000 direct jobs and 35,000 indirect jobs, especially in the Niger Delta region.

Bayelsa State Governor, Senator Douye Diri, represented by Dr. Ebieri Jones, Commissioner for Trade, Industry and Investment, praised the project’s potential to employ Bayelsa’s youth and called on more investors to take advantage of the state’s resources.

The Managing Director of BFPCL, Dr. Ben Okoye, underscored the importance of rapidly unlocking Nigeria’s gas potential before global demand shifts, while NNPC’s Executive Vice President, Upstream, Oritsemeyiwa Eyesan, highlighted President Bola Tinubu’s executive orders as key to advancing Nigeria’s gas development.

The Brass Fertiliser and Petrochemical project is part of Nigeria’s broader strategy to leverage its gas resources for economic growth, aligning with the country’s Decade of Gas initiative.

Representatives from Shell, TotalEnergies, Eni, and other stakeholders also attended the event, emphasising the commitment of all parties to the success of the project.