Nigeria signs $3.5-billion gas supply deal

ABUJA, October 14, 2024 – Nigeria has signed a USD 3.5-billion deal to supply gas for the proposed Brass Fertilizer and Petrochemical Project, Petroleum Ministry Permanent Secretary Nicholas Agbo Ella said on Friday.

The gas sales and purchase agreement was signed between the government and the project’s joint-venture partners: Shell Petroleum Development Company, TotalEnergies, Eni and NNPC.

Under the agreement, the joint-venture partners will supply 7.64 mcm (270 mcf) of gas per day to the Brass fertiliser and petrochemical plant. The plant is expected to generate more than USD 1.5 billion in petrochemical exports, with its main product being methanol.

Ella said that the agreement “represents a significant milestone in our ongoing efforts to monetise Nigeria’s vast gas reserves” and would “reduce fertiliser exports by 30%, saving Nigeria approximately USD 200 million in foreign exchange annually.”

The gas sales and purchase agreement represents an important milestone on the way to the Brass Fertilizer and Petrochemical Project’s financial close. It moreover represents Nigeria’s commitment to promoting a business friendly environment and foreign investment. Finally, the deal aligns with the government’s Decade of Gas initiative, which aims to use the country’s 5.66 tcm (200 tcf) of natural gas to transform its economy into a gas-powered one.

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