Shell, Nigeria Ink Gas Deal To Fuel $3.8B Methanol Project: Report

Shell plc SHEL reportedly inked a deal with the Nigerian government to supply gas to the proposed $3.8 billion Brass methanol facility.

The project will include a gas processing plant, a methanol production and refining site, and product export facilities, as per Reuters.

Minister Ekperikpe Ekpo said in a statement, “the Gas Supply and Purchase Agreement (GSPA), crucial for the Brass methanol project, will be executed next month following successful talks with Shell’s Nigeria CEO and executives from other companies involved.” 

“The NNPC/Shell joint venture partners are now fully committed to uninterrupted gas supply for the development of the Brass Methanol project.” 

Also Read: Shell Streamlines Renewables Portfolio with SouthCoast Wind Sale

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

As per the report, 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.

Also Read: Shell Defends Climate Goals, Rejects Shareholder Resolution As Damaging

Investors can gain exposure to the stock via Direxion Hydrogen ETF HJEN and VanEck Natural Resources ETF HAP.

Price Action: SHEL shares are up 0.32% at $71.37 on the last check Thursday.

Photo via Wikimedia Commons