SPDC JV, Partners sign $3.5 billion agreement for Brass Fertiliser, Petrochemical Project

The Shell Petroleum Development Company (SDPC) Joint Venture and partners on Friday signed a Gas Sales and Purchase Agreement (GSPA) for the Brass Fertiliser and Petrochemical project in Bayelsa State.

The spokesperson for the Minister of State Petroleum Resources (Gas), Louis Ibah, in a statement on Friday said this landmark agreement, supervised by the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, paves the way for the Brass Fertilizer and Petrochemical Company Limited (BFPCL) and its partners to achieve financial close for the brass fertiliser and methanol project.

It explained that the Joint Venture partners, which comprising of the 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 offtaker in Nigeria.

This project, according to the statement, is expected to generate over $1.5 billion annually from exports of fertilizers, petrochemicals, and other gas-based products.

Speaking at the signing of the agreement, Mr Ekpo 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.

He 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.”

Also speaking, the Permanent Secretary, Ministry of Petroleum Resources, Nicholas Ella, described the GSPA as a significant milestone in monetising Nigeria’s vast gas reserves, currently over 209 trillion cubic feet.

“The project will reduce fertilizer imports by 30 per cent, saving Nigeria approximately $200 million in foreign exchange annually, and contribute around $600 million annually to Nigeria’s Gross Domestic Product (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,” Mr Ella was quoted by the statement as saying.

On his part, Ben Okoye, the managing director of BFPCL, lauded President Tinubu and Mr Ekpo for their roles in finalising the agreement.

Mr Okoye emphasised the need to unlock Nigeria’s gas deposits promptly, citing the urgency to utilise gas before it becomes less relevant.

Bayelsa State Governor, Douye Diri, welcomed the project, highlighting its potential to generate employment opportunities for the state’s youths and Nigeria at large.

Mr Diri, represented by the Commissioner for Trade, Industry and Investment, Ebieri Jones, invited prospective investors to tap into Bayelsa’s vast potential and peaceful disposition, dubbing it “investment heaven” for investors.

“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 said.