The Nigerian government has finalized a significant Gas Sale and Purchase Agreement valued at $3.3 billion. This deal, struck between the Shell Petroleum Development Company Joint Venture and BRASS Fertilizer and Petrochemical Company Ltd, is set to supply 270 million barrels of gas daily to the domestic market, marking the largest single gas agreement of its kind in the country.
This agreement is part of Nigeria’s ongoing efforts to tap into its extensive gas reserves, which currently total over 209 trillion cubic feet. The goal is to monetize these reserves and strengthen the domestic gas industry.
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The $3.3 billion BRASS Fertilizer and Petrochemical Project is expected to generate $1.5 billion annually from exports, reduce fertilizer imports by 30%, and save the country $200 million annually in foreign exchange. Additionally, the project will create more than 5,000 direct jobs and 35,000 indirect jobs, contributing $600 million to Nigeria’s GDP annually and delivering an economic impact of up to $2 billion.
This agreement could represent a pivotal step in Nigeria’s ambition to become a gas-powered economy.
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