In a major step towards advancing Nigeria’s gas and industrial sectors, the federal government on Friday, October 11, signed a Gas Sales and Purchase Agreement (GSPA) with Shell Petroleum Development Company (SPDC) Joint Venture for the $3.3 billion Brass Fertilizer and Petrochemical Company Ltd. (BFPCL) project. The agreement was formalized in a ceremony held in Abuja.
The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, who spoke at the event, praised the efforts of all involved parties. He emphasized the importance of maintaining the determination that led to the agreement, after overcoming numerous challenges along the way. “While this Signing Ceremony is a significant milestone in the development of the US$3.3 billion Brass Methanol Project, it is one more step in the journey to making the project a reality,” Ekpo said. He urged all parties to “continue in the same steadfastness that has enabled us to surmount all previous hurdles.”
The project, which took over a decade to reach this point, will see the SPDC Joint Venture partners, led by the Nigerian National Petroleum Company Limited (NNPCL), providing an estimated 270 million standard cubic feet of gas per day to the Brass Fertilizer plant. The minister expressed optimism that financial close and the commencement of actual construction would follow shortly. He also highlighted the project’s potential to attract much-needed Foreign Direct Investment (FDI) and generate thousands of jobs for Nigerians.
Also speaking at the event, Permanent Secretary, Ambassador Nicholas Ella, revealed that the Brass Fertilizer and Petrochemical Project is valued at $3.5 billion. He stated that the project is expected to generate over $1.5 billion annually from exports of fertilizer, petrochemicals, and other gas-related products. Ella underscored the significance of the deal, linking it to President Bola Ahmed Tinubu’s “Decade of Gas” initiative, which positions gas as a key driver of Nigeria’s economic growth and energy security.
He explained that the project would not only increase exports but also reduce Nigeria’s fertilizer imports by 30%, saving the country about $200 million in foreign exchange annually. Additionally, the project is projected to contribute approximately $600 million per year to Nigeria’s Gross Domestic Product (GDP), with a wider economic impact of up to $2 billion annually due to growth in related industries.
Ella also noted that the project aligns with Nigeria’s goal to achieve zero routine gas flaring by 2030, as outlined in the National Gas Policy. He commended the SPDC JV partners—Shell, TotalEnergies, and Eni—who, over the past decade, have collectively invested more than $15 billion in Nigeria’s gas infrastructure.
The Brass Fertilizer project is expected to create over 5,000 direct jobs and an additional 35,000 indirect jobs, providing a major boost to the Niger Delta region’s economy and livelihoods.
