CNG: NNPC Secures $3.3bn Methanol Plant Deal in Bayelsa with New Gas Supply Agreement

The Nigerian National Petroleum Company (NNPC) Limited, in collaboration with international oil companies Shell, TotalEnergies, and Agip, has finalized a landmark gas supply agreement for a $3.3 billion methanol plant in Bayelsa State.

This pivotal deal, marks a pivotal step in Nigeria's efforts to monetize its vast gas reserves, which are estimated at over 200 trillion cubic feet.

The project, spearheaded by Brass Fertilizer & Petrochemical Company Limited, is set to receive an estimated 270 million standard cubic feet of gas per day from the NNPC and its partners.

This initiative is expected to generate more than $1.5 billion annually from exports of fertilizers, petrochemicals, and other gas-based products. Additionally, it aims to reduce fertilizer imports by 30%, saving Nigeria approximately $200 million in foreign exchange each year.

Ekperikpe Ekpo, the Minister of State Petroleum Resources (Gas), emphasized the project's potential to create thousands of jobs and significantly contribute to Nigeria's Gross Domestic Product (GDP). The project is projected to add around $600 million annually to the GDP, with a broader economic impact of up to $2 billion per year due to growth in related industries.

Bayelsa State Governor, Senator Douye Diri, highlighted the employment opportunities the project would bring to the state's youth and invited investors to explore Bayelsa's potential as an "investment haven." The agreement also includes plans for 16 new methanol-powered vessels by COSCO Shipping Lines Co Ltd., which will transport products from the methanol plant to global destinations.