Nigeria, Shell $3.8b methanol project advances

Nigeria has reached an agreement with Shell for the supply of gas to its proposed $3.8 billion Brass methanol facility, overcoming a significant obstacle to the final investment decision on the project, according to Reuters citing the Minister of State for Gas on Thursday.

Nigeria, boasting Africa’s largest natural gas reserves of over 200 trillion cubic feet, has faced challenges in harnessing the resource due to financial constraints and inadequate infrastructure.

Minister Ekperikpe Ekpo announced in a statement that the Gas Supply and Purchase Agreement (GSPA), essential for the Brass methanol project, will be finalised next month following productive discussions with Shell’s Nigeria CEO and other company executives.

The GSPA will ensure a sustained gas supply from a Shell-operated joint venture for the methanol production facility planned on Brass Island in the oil-rich coastal Bayelsa state.

“NNPC/Shell joint venture partners are fully committed to providing uninterrupted gas supply for the advancement of the Brass Methanol project,” Ekpo emphasised.

“The President is deeply invested in this project and aims for positive progress regarding the Brass Methanol project before the end of May this year,” Ekpo added.

The project encompasses a gas processing plant, a methanol production and refining facility, and export infrastructure for the products.