Oil
NNPC pledges support for $3.6bn Brass Methanol Plant…as partner takes FID on project
Modupe ASUDO
ABUJA-THE Nigerian National Petroleum Corporation (NNPC) says it would do everything within its powers to ensure the timeous completion of the $3.6bn Integrated Gas Processing and Methanol Plant in Odioma, Brass Island, Bayelsa State.The Group Managing Director of NNPC, Mallam Mele Kyari, made the commitment at the signing of the Final Investment Decision (FID) on the project which held Friday at the Transcorp Hilton Hotel, Abuja. A press release by the Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, stated that the facility is projected to be the largest methanol plant in Africa and the first in Nigeria. The project is being executed by the Brass Fertilizer and Petrochemical Company Limited (BFPCL), an incorporated entity owned by the Nigerian National Petroleum Corporation (NNPC), DSV Engineering, and the Nigerian Content Development and Monitoring Board (NCDMB).
Speaking at the event, Mallam Kyari, said the Corporation would do everything possible to make the project come to fruition, noting that NNPC was pleased with the current efforts by the Federal Government to provide value for Nigeria’s gas resources. Describing the FID as one of the most significant FIDs in recent times, Kyari said the project was in tandem with the earlier declaration of 2020 as the year of gas and 2021-2030 as the decade of gas by the Minister of State for Petroleum Resources. He remarked that the construction phase of the project would create about 30,000 in addition to the 5,000 permanent jobs which would come in place when the plant becomes operational.
Earlier in his welcome address, the BFPCL Board Chairman, who is also the NNPC Chief Operating Officer, Gas & Power, Engr. Usman Yusuf, disclosed that already a lump sum Turnkey Engineering, Procurement and Construction (EPC) contract has been awarded to the China Tianchen Engineering Corporation (TCC) while TATA Consulting Engineers are providing project management consultancy for the delivery of the plant in 2024. “In 2017, BFPCL secured an Initialled Gas Sales and Purchase Agreement (GSPA) with SPDC JV for a 25-year supply of 270MMscf/d rich gas to the project. T
he integrated project is estimated to cost about USD3.6 billion and is expected to deliver 10,000TPD Methanol products to the export and local markets,” he stated.In his presentation, the Executive Vice-Chairman of BFPCL, Mr. Ben Okoye, said the signing of the FID was an affirmative vote and consent by the Board to construct the plant. He explained that with a production capacity of 10,000 tons per day (tpd), the facility would be the largest methanol plant in Africa with a huge potential to provide gainful employment many youths both at the construction and operational stages.
Okoye informed that based on lessons learnt from the historic checkered relationships between host communities and oil and gas companies, the project would allow for host communities to have equity shareholding participation to give them a sense of belonging.
Speaking at the event, the Minister of State Petroleum Resources and Alternate Chairman of the NNPC Board, Chief Timipre Sylva, said the FID marked yet another milestone in the ongoing efforts to monetize and add value to the nation’s abundant natural gas endowments. He noted that in July 2020, President Muhammadu Buhari approved the development of the Brass Gas Hub with the sole aim of aggregating and monetizing all stranded gas in the Brass area which amounts to over 14 trillion cubic feet. “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.
The project is expected to have 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’’ the Minister said. While assuring the BFPCL of government support, he called on the company to ensure timeous completion of the project.
Oil
NNPC Targets 60% Methane Emission Reduction By 2031
The Nigerian National Petroleum Company Limited (NNPC) has unveiled a bold strategy to reduce methane emissions in the oil and gas sector by 60% by 2031, with an ultimate goal of achieving net-zero emissions by 2060.
This announcement reinforces Nigeria’s leadership role under the Global Methane Pledge initiative and its commitment to tackling climate change.
The Group Chief Executive Officer of NNPC, Mele Kyari, disclosed these plans during a meeting on Thursday with Robert Leahman, the U.S. State Department’s Global Methane Program Manager, and a delegation from Deloitte.
READ MORE: Atiku Gloats Over AUN’s Achievements Ahead Of 20th Anniversary
The discussions, held at the NNPC Towers in Abuja, focused on collaborative efforts to reduce methane emissions through innovative and sustainable practices.
“Reducing methane emissions is not just an environmental necessity but also a strategic imperative for Nigeria’s energy transition. We are leveraging partnerships to adopt global best practices and innovative solutions,” Kyari stated.
Key among these efforts is a pilot project in the Niger Delta, aimed at establishing emissions baselines, mitigating methane leaks, and promoting sustainable operations across Nigeria’s energy sector.
The project, a partnership between NNPC, Deloitte, and the U.S. Bureau of Energy Resources, will utilize data-driven methodologies to pinpoint and address methane hotspots.
Robert Leahman commended Nigeria’s proactive stance, describing it as a benchmark for other nations on the continent.
“Nigeria’s leadership under the Global Methane Pledge sets a standard for the continent. These initiatives will not only help reduce emissions but also drive sustainable development in the energy sector,” he said.
Kyari highlighted the broader benefits of addressing methane emissions, noting its significance for both environmental protection and economic efficiency.
“This collaboration is a game-changer. By addressing methane leaks, we’re reducing waste, saving costs, and protecting the environment. It’s a win-win for our economy and the planet,” he added.
Oil
FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones
These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
Business
Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.