- Nigeria has signed a deal with Shell to supply gas to its proposed $3.8 billion brass methanol facility.
- The GSPA will secure a long-term gas supply from a Shell-operated joint venture for the methanol production facility built in Bayelsa state.
The Nigerian minister of state for gas, Ekperikpe Ekpo, has stated that Nigeria has signed a deal with Shell to supply gas to its proposed $3.8 billion brass methanol facility. This deal will solve a significant hurdle to a final investment decision on the project.
Moreover, Ekpo said the Gas Supply and Purchase Agreement (GSPA) is crucial for the brass methanol project. The project’s execution will start next month following successful talks with Shell’s Nigeria CEO and executives from other companies involved.
The GSPA will secure a long-term gas supply from a Shell-operated joint venture for the methanol production facility built on Brass Island in the oil-rich coastal Bayelsa state.
“The NNPC/Shell joint venture partners are now fully committed to uninterrupted gas supply for developing the brass methanol project,” Ekpo said.
Furthermore, Ekpo said, “Mr President is very passionate about this project and wants something positive to happen regarding the brass methanol project before the end of May this year.”
The project includes a gas processing plant, a methanol production and refining site, and product export facilities.