NNPC, partners sign FID on $3.6bn Brass Methanol Plant

• Project would create 35,000 jobs-Kyari

The Group Managing Director of NNPC, Mallam Mele Kyari, said the corporation would ensure the timely completion of the $3.6bn Integrated Gas Processing and Methanol Plant in Odioma, Brass Island, Bayelsa State, which is the largest methanol plant in Africa.

Mallam Kyari, made the commitment at the signing of the Final Investment Decision (FID) on the project which took place on Friday at the Transcorp Hilton Hotel, Abuja, adding that the project would create 35,000 jobs.

A press release sighted by Gentechnews from the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, stated that the facility is projected to be the largest methanol plant in Africa and the first in Nigeria.

According to the statement, the project is being executed by the Brass Fertilizer and Petrochemical Company Limited (BFPCL), an incorporated entity owned by the Nigerian National Petroleum Corporation (NNPC), DSV Engineering, and the Nigerian Content Development and Monitoring Board (NCDMB).

Speaking at the signing ceremony, Mallam Kyari, said the Corporation would do everything possible to make the project come to fruition, adding that NNPC was pleased with the current efforts by the Federal Government to provide value for Nigeria’s gas resources.

The NNPC boss described the FID as one of the most significant FIDs in recent times, noting that the project was in tandem with the earlier declaration of 2020 as the year of gas and 2021-2030 as the decade of gas by the Minister of State for Petroleum Resources.

He disclosed that the construction phase of the project would create about 30,000 as well as 5,000 permanent jobs which would come in place when the plant becomes operational.

Earlier, the BFPCL Board Chairman, who is also the NNPC Chief Operating Officer, Gas & Power, Engr. Usman Yusuf, disclosed that already a lump sum of Turnkey Engineering, Procurement and Construction (EPC) contract has been awarded to the China Tianchen Engineering Corporation (TCC) while TATA Consulting Engineers are providing project management consultancy for the delivery of the plant in 2024.

“In 2017, BFPCL secured an Initialed Gas Sales and Purchase Agreement (GSPA) with SPDC JV for a 25-year supply of 270MMscf/d rich gas to the project. The integrated project is estimated to cost about USD3.6 billion and is expected to deliver 10,000TPD Methanol products to the export and local markets,” Yusuf said.

During his presentation, the Executive Vice-Chairman of BFPCL, Mr. Ben Okoye, said the signing of the FID was an affirmative vote and consent by the Board to construct the plant, adding that with a production capacity of 10,000 tons per day (tpd), the facility would be the largest methanol plant in Africa with a huge potential to provide gainful employment to many youths both at the construction and operational stages.

Okoye announced that from the lessons learnt on the historic chequered relationships between host communities and oil and gas companies, the project would allow for host communities to have equity shareholding participation to give them a sense of belonging.

On his part, the Minister of State Petroleum Resources and Alternate Chairman of the NNPC Board, Chief Timipre Sylva, said the FID marked yet another milestone in the ongoing efforts to monetize and add value to the nation’s abundant natural gas endowments.

Sylva recalled that in July 2020, President Muhammadu Buhari approved the development of the Brass Gas Hub with the sole aim of aggregating and monetizing all stranded gas in the Brass area which amounts to over 14 trillion cubic feet.

“Today we are witnessing the signing of the Final Investment Decision of Phase 1 of the Brass Gas Hub by the promoters of this laudable project.

“The project is expected to have very significant economic impact on the country including but not limited to support for gas based industries, revenue generation, import substitution for the methanol needs of the country that is currently 100 per cent imported, among others’’ the Minister added.

The minister assured the BFPCL of government support, while urging the company to ensure timely completion of the project.