Nigeria has taken a significant step towards monetizing its vast gas reserves.
The country signed a gas supply agreement with joint venture partners, including Shell, TotalEnergies, and Eni, to support a proposed $3.5 billion fertilizer and petrochemical plant in Brass, Bayelsa State.
The deal will see the joint venture partners supply an estimated 270 million standard cubic feet of gas per day to the plant.
This agreement is part of the broader Brass Fertilizer and Petrochemical Project, expected to generate at least $1.5 billion annually from exports.
The project is expected to reduce Nigeria’s reliance on fertilizer imports by 30%, saving the country approximately $200 million in foreign exchange annually.
This aligns with Nigeria’s goal of boosting its domestic fertilizer production and reducing its dependence on imports.
Nigeria, Africa’s largest gas producer, holds substantial gas reserves.
The country aims to develop its gas resources to power industries, power plants, and for exports. Additionally, Nigeria seeks to end routine gas flaring by 2030.