NNPC, Stakeholders Seal Pact On $3.6bn Brass Methanol Plant

….Project To Deliver 35,000 Jobs For Nigerians

The Nigerian National Petroleum Corporation, in partnership with stakeholders have announced the Final Investment Decision on the $3.6bn Integrated Gas Processing and Methanol Plant in Odioma, Brass Island in Bayelsa State.

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The project is being executed by the Brass Fertilizer and Petrochemical Company Limited, an incorporated entity owned by the Nigerian National Petroleum Corporation, DSV Engineering, and the Nigerian Content Development and Monitoring Board.

The Group Managing Director of the NNPC, Mallam Mele Kyari, while speaking at the signing of the FID on the project in abuja on Friday, said that the Corporation would do everything within its powers to ensure the timely completion of the project.

Kyari noted that the FID remain one of the most significant project in recent times, adding that it was in tandem with the earlier declaration of 2020 as the year of gas and 2021-2030 as the decade of gas by the Minister of State for Petroleum Resources, Timipre Sylva.

According to him, the construction phase of the project is expected to create about 30,000 in addition to the 5,000 permanent jobs which would come in place when the plant becomes operational.

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The BFPCL Board Chairman, Usman Yusuf, in his remarks said, “In 2017, BFPCL secured an Initialled Gas Sales and Purchase Agreement with SPDC JV for a 25-year supply of 270MMscf/d rich gas to the project.

“The integrated project is estimated to cost about $3.6bn and is expected to deliver 10,000 tons per day methanol products to the export and local markets.”

In his presentation, the Executive Vice-Chairman of BFPCL, Ben Okoye, said the signing of the FID was an affirmative vote and consent by the Board to construct the plant.

He explained that with a production capacity of 10,000 tons per day, the facility would be the largest methanol plant in Africa with a huge potential to provide gainful employment for many youths both at the construction and operational stages.

Okoye stated that based on lessons learnt from the historic checkered relationships between host communities and oil and gas companies, the project would allow for host communities to have equity shareholding participation to give them a sense of belonging.

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Also, the Minister of State Petroleum Resources and Alternate Chairman of the NNPC Board, Timipre Sylva, noted that the FID marked yet another milestone in the ongoing efforts to monetize and add value to the nation’s abundant natural gas endowments.

He noted that in July 2020, President Muhammadu Buhari approved the development of the Brass Gas Hub with the sole aim of aggregating and monetizing all stranded gas in the Brass area which amounts to over 14 trillion cubic feet.

“Today we are witnessing the signing of the Final Investment Decision of Phase 1 of the Brass Gas Hub by the promoters of this laudable project.

“The project is expected to have very significant economic impact on the country including but not limited to support for gas based industries, revenue generation, import substitution for the methanol needs of the country that is currently 100 per cent imported, among others,” the Minister said.

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