Nigeria’s ambitious Brass Methanol Project is poised to take off as key agreements are finalized with Chinese investors, marking a significant boost for the country’s petrochemical industry.
This development was announced in a statement from Louis Ibah, Spokesman for the Minister of State for Petroleum Resources (Gas), on Tuesday.
Brass Fertilizer Petrochemical Company Limited (BFPCL) has reached the final stages of a Gas Sales and Purchase Agreement (GSPA) with its gas suppliers, the Nigerian National Petroleum Company (NNPC) and the Shell Petroleum Development Company Joint Venture. This agreement is crucial for the project’s financial closure and execution, with expectations to finalize by September 30, 2024, after years of delays.
The $3.3 billion Brass Methanol Project will include the construction of a methanol plant, an industrial park, and gas gathering pipelines, supported by recent Project Agreements signed with the China Road and Bridge Corporation. Additionally, BFPCL has secured a Shipping Vessels Acquisition and Joint Venture Agreement with COSCO Shipping Lines Co. Ltd., involving 16 new 50,000MT methanol-powered vessels valued at approximately $900 million. These vessels will facilitate the transportation of methanol and other products from the Brass Methanol Plant to global markets.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, attributed these developments to President Bola Tinubu’s recent state visit to China, which catalyzed discussions with key stakeholders, including the Bohai Chemical Industries Group and the China Africa Development Fund (CADFund). Both organizations have committed to investing in the Brass Methanol Project in Bayelsa State.
Ekpo emphasized the significance of the finalized GSPA, describing it as a “breakthrough” that paves the way for the project’s financial closure and execution phase, anticipated by December 31, 2024. He underscored the project’s potential to create jobs and stimulate economic growth in Nigeria.
The Minister reassured Chinese investors of robust protections for their investments, reflecting the Nigerian government’s commitment to fostering a conducive environment for international partnerships. “Investors can enter and exit the market with confidence, knowing that their investments are protected and their rights respected,” Ekpo stated.
BCIG, a leader in petrochemical development, aims to establish a new-generation infrastructure that is neutral, open, and inclusive, while CADFund focuses on enhancing industrialization and sustainable development across Africa.
The Brass Methanol Project represents another significant collaboration between Nigeria and China, expected to play a crucial role in Nigeria’s industrialization drive and contribute to the revitalization of the country’s petrochemical sector.
