Ekperikpe Ekpo, the Minister of State for Gas, has said that the Federal government secured an agreement with Shell (SHELL) to supply gas to its planned $3.8 billion methanol plant in Brass, Bayelsa State, clearing a significant obstacle for the final investment decision on the project.
Ekpo said that following successful negotiations with the CEO of Shell Nigeria and executives from other participating companies, the Gas Supply and Purchase Agreement (GSPA) essential for the Brass methanol project will be signed next month.
The GSPA has secured a long-term gas supply agreement with a Shell-led joint venture to support the methanol production plant that is planned to be constructed on Brass Island in Bayelsa State, which is rich in oil resources along the coast.
The project includes a gas processing plant, a facility for methanol production and refining, and infrastructure for exporting products.
The Brass Methanol Plant, currently under construction on Brass Island in Bayelsa, is anticipated to start operations this year.