NNPC takes final investment decision on $3.6bn Brass methanol plant

The Nigerian National Petroleum Corporation (NNPC) has taken a final investment decision (FID) on the $3.6 billion integrated gas processing and methanol plant in Odioma, Brass Island of Bayelsa state.

NNPC, led by Mele Kyari, its group managing director, signed the agreement with its partners at the Transcorp Hilton Hotel in Abuja, on Friday.

The project will be implemented by the Brass Fertiliser and Petrochemical Company Limited (BFPCL), an incorporated entity owned by the NNPC, DSV Engineering, and the Nigerian Content Development and Monitoring Board (NCDMB).

In a statement, Kennie Obateru, the group general manager of NNPC public affairs division, said the facility is projected to be the largest methanol plant in Africa and the first in Nigeria.

Speaking at the event, Kyari said the plant would be of economic benefit as the construction phase of the project would create about 30,000 jobs in addition to 5,000 permanent jobs when the plant becomes operational.

He pledged that the NNPC would do everything within its powers to ensure the prompt completion of the project.

Kyari added that Shell will provide gas feedstock for the plant, which is expected to be completed in 2024.

In his address, Timipre Sylva, minister of state for petroleum resources, said the project will be beneficial to gas-based industries.

He said it would serve as a source of revenue for the government, adding that importation of gas will be reduced.

“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,” he said.

“The project is expected to have a 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.”

In his remarks, Ben Okoye, the executive vice-chairman of BFPCL, said the FID signing was an affirmative vote and consent by the board to construct the plant.

He said the facility would be the largest methanol plant in Africa with a production capacity of 10,000 tons per day (tpd)  and a huge potential to provide gainful employment.