Nigeria’s estimated gas reserve is approximately 200 trillion cubic feet. Per the deal, the JV will deliver 270 million cubic feet of gas per day (MMcf/d) to the Brass Fertilizer project in Bayelsa state. Nigeria’s Gas Minister highlighted the importance of the deal, accentuating its role in Nigeria's major shift away from oil dependence.
Boosting Exports and Reducing Imports
Nigeria’s Brass Fertilizer project will have a far-reaching impact on local and global economy as well. Nigeria’s gas minister highlighted that the methanol manufacturing project would boost the country’s exports to a different level and would also reduce the import of fertilizer by 30%, contributing to an annual saving of $200 million in foreign exchange for the country. The project would also contribute about $600 million to the country’s gross domestic product and create thousands of jobs for the local communities.
Per a related development, BFPCL has also entered into an accord with COSCO Shipping Lines to construct a methanol-powered vessel to transport the manufactured methanol to international markets, thereby boosting Nigeria’s export potential.