Lagos — Three multinational oil companies operating in Nigeria – Shell, TotalEnergies, Eni – are to deliver an estimated 270 million standard cubic feet of gas per day, Mscf/d, gas to a proposed $3.5 billion Brass fertiliser and petrochemical plant in Bayelsa State.
Nigeria took a major step in its quest to earn revenue from its vast gas reserves as it signed a deal with the three joint venture partners to supply gas to the proposed plant.
The Permanent Secretary in the Ministry of Petroleum Resources Nicholas Agbo Ella said the Gas Sale and Purchase Agreement, GSPA, is a part of the Brass Fertiliser and Petrochemical Project, which is expected to generate at least $1.5 billion annually from exports of petrochemicals and other gas-based products.
“This agreement represents a significant milestone in our ongoing efforts to monetize Nigeria’s vast gas reserves,” Reuters quoted Ella as saying.
Nigeria, Africa’s top energy producer, holds the continent’s largest gas reserves of more than 200 trillion cubic feet and seeks to develop the commodity to boost supplies to industries, power plants and for exports, and to end routine flaring by 2030.
“In addition to boosting exports, the project will reduce fertiliser imports by 30%, saving Nigeria approximately $200 million in foreign exchange annually,” Ella added.
