Nigeria strikes deal with Shell to supply $3.8 billion methanol project

In Nigeria, Reuters reported that Nigeria has signed a deal for Shell to supply gas to its proposed $3.8 billion Brass methanol facility, resolving a major hurdle to a final investment decision on the project. 

Nigeria, which holds Africa’s largest natural gas reserves of more than 200 trillion cubic feet, has struggled to tap the commodity due to capital constraints and a lack of infrastructure, according to the report.

The Gas Supply and Purchase Agreement (GSPA) will be executed next month following successful talks with Shell’s Nigeria CEO and executives from other companies involved, the report added.

The GSPA will secure a long-term gas supply from a Shell-operated joint venture for the methanol production facility that will be built on Brass Island in the oil-rich coastal Bayelsa state.

More on the story.