Nigerian National Petroleum Company (NNPCL) and its joint venture partners including Shell Petroleum Development Company, TotalEnergies, and Agip (SPDC), have finalised a landmark agreement to supply gas to a $3.3 billion methanol plant being developed by Brass Fertiliser & Petrochemical Company Ltd.
The signing of the Gas Sales and Purchase Agreement (GSPA) comes nine years after the project was announced.
This agreement paves the way for the Brass Fertiliser and Petrochemical Company Limited (BFPCL) and its partners to achieve financial closure for the Brass Fertiliser and Methanol Project.
The JV partners, comprising NNPCL, SPDC, TotalEnergies Ltd, and Eni, will supply 270 million standard cubic feet of gas per day (270MMscfd) to BFPCL, the largest single GSPA to any domestic gas offtaker in Nigeria.
This project is expected to generate over $1.5 billion annually from exports of fertilizers, petrochemicals, and other gas-based products.