Nigeria has taken a significant stride towards monetizing its abundant gas reserves, signing a gas supply agreement with joint venture partners Shell, TotalEnergies, and Eni for a proposed $3.5 billion fertilizer and petrochemical plant.
The Gas Sale and Purchase Agreement, announced by Petroleum Ministry Permanent Secretary Nicholas Agbo Ella, will see the partners deliver approximately 270 million standard cubic feet of gas per day to the plant in Brass, Bayelsa State.
The Brass Fertiliser and Petrochemical Project is expected to generate annual revenue of at least $1.5 billion from exports of petrochemicals and other gas-based products.
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“This agreement marks a pivotal moment in our drive to capitalize on Nigeria’s vast gas resources,” Ella stated.
As Africa’s leading energy producer with over 200 trillion cubic feet of gas reserves, Nigeria aims to expand its gas industry to fuel domestic industries, power plants, and exports while phasing out routine gas flaring by 2030.
The project is anticipated to reduce Nigeria’s fertilizer imports by 30%, saving the country approximately $200 million annually in foreign exchange.
