The Federal Government’s effort to boost the country’s gas sector has received a significant boost with the signing of a Gas Sales and Purchase Agreement (GSPA) for the Brass Fertilizer and Petrochemical project in Bayelsa State.
This landmark agreement was supervised by the Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, according to a statement on Friday by his media aide: Mr. Louis Ibah.
He stated that the agreement has paved the way for the Brass Fertilizer and Petrochemical Company Limited (BFPCL) and its partners to achieve financial close for the Brass Fertilizer and Methanol Project.
According to him, the JV partners, comprising NNPC Ltd, Shell Petroleum Development Company (SPDC), TotalEnergies Ltd, and Eni, will supply 270 million standard cubic feet of gas per day (270MMscfd) to BFPCL, the largest single GSPA to any domestic gas offtake in Nigeria.
He added that the project is expected to generate over $1.5 billion annually from exports of fertilizers, petrochemicals, and other gas-based products.
Ekpo in his speech at the event praised President Bola Tinubu’s steadfast support and guidance,
He said: “Achieving this GSPA showcases Nigeria’s business-friendly environment and the government’s commitment to investor-friendly policies.”
The Gas Minister urged all parties to maintain their steadfastness, expecting BFPCL and its partners to achieve financial closure and commence construction soon to “bring in much needed Foreign Direct Investment (FDI) and create thousands of jobs for our teeming population while changing the face and fortunes of the host Bayelsa State and community for good.”
Permanent Secretary, Ministry of Petroleum Resources, Ambassador Nicholas Ella Agbo described the GSPA as a significant milestone in monetizing Nigeria’s vast gas reserves, currently over 209 trillion cubic feet.
“The project will reduce fertilizer imports by 30%, saving Nigeria approximately $200 million in foreign exchange annually, and contribute around $600 million annually to Nigeria’s GDP and create over 5,000 direct jobs and 35,000 indirect jobs significantly improving the livelihoods of many Nigerians, particularly in the Niger Delta region,” he said.
The Managing Director of BFPCL, Dr. Ben Okoye, lauded President Tinubu and Ekpo for their roles in finalizing the GSPA. Okoye emphasized the need to unlock Nigeria’s gas deposits promptly, citing the urgency to utilize gas before it becomes less relevant.
Bayelsa State Governor, Sen. Douye Diri, according to the statement, welcomed the project.
He highlighted its potential to generate employment opportunities for the state’s youths and Nigeria at large.
Represented by Dr Ebieri Jones, Commissioner for Trade, Industry and Investment, Diri invited prospective investors to tap into Bayelsa’s vast potential and peaceful disposition, dubbing it an “investment haven” for investors.
Other speakers include NNPC’s Executive Vice President, Upstream, Mrs Oritsemeyiwa Eyesan; Managing Director of SPDC, Mr. Osagie Okunbor; Executive Director of Strategy and Business, TotalEnergies, Mr Abiodun Afolabi; Vice Chairman/Managing Director Eni, Mr. Fabrizio Bolondi, as well as Coordinating Director, Decade of Gas, Mr Ed Ubong, praised Hon Ekpo, for his pivotal role in breaking the impasse that delayed the GSPA signing since 2015.
According to the statement, they expressed delight and gratitude for Ekpo’s leadership and dedication, which ensured the deal’s success.
“The JV partners also reaffirmed their commitment to the project’s success, underscoring the importance of collaboration and effective stakeholder engagement to unlock Nigeria’s vast gas potential,” the statement explained.
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