Nigeria’s Brass Fertilizer Petrochemical Company Limited (BFPCL) has made significant progress as the much-awaited Gas Purchase and Sale Agreement (GSPA) with gas supplier NNPC/SPDC Joint Venture (JV) nears completion, paving the way for the financial completion of the project and the start of the execution phase.
After several years of delays, the GSPA is expected to be completed by September 30, 2024. This marks a significant milestone in the project’s journey and sets the stage for a major boost to Nigeria’s petrochemical industry, the Ministry of Petroleum Resources said on Tuesday.
This came after BFPCL and China Road and Bridge Corporation (CRBC) signed project agreements for a brass industrial park, methanol plant, gas gathering pipelines, and associated facilities totaling $3.3 billion and COSCO Shipping Lines Co Ltd signed a ship purchase and joint venture agreement for 16 new 50,000 tonne methanol-fuelled vessels.
The framework agreement with COSCO calls for the construction of 16 vessels worth approximately $900 million to evacuate and transport methanol and other products from the brass methanol plant to various destinations around the world. COSCO is one of the world’s largest shipping companies.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who disclosed this on Tuesday, also announced that Bohai Chemical Industry Group (BCIG) and China Africa Development Fund (CADFund) have signed an agreement with their joint venture partners (JV) to jointly invest in the brass methanol project and ensure construction works can commence immediately.
Ekpo said these significant gains are due to BFPCL’s strategic engagement with Chinese investors who were present during President Bola Ahmed Tinubu’s recent state visit to China.
“During the visit, I held fruitful discussions with key stakeholders, including BCIG and CADFund, which have now expressed commitment to invest in the US$3.3 billion Brass Methanol Project in Bayelsa State,” Ekpo said.
“On this same project, I also want to state that we have expedited the completion of the Gas Sales and Purchase Agreement (GSPA) between BFPCL and Shell Petroleum Development Company (SPDC) Limited Joint Venture, a major breakthrough that paves the way for the project’s financial close and execution phase,” he added.
With the GSPA due to be completed by September 30, 2024, and financial close to be achieved by December 31, 2024, the Minister’s visit to China sets the stage for a significant boost to Nigeria’s petrochemical industry, with the government’s commitment to attract investment and drive economic growth.
Ekpo also assured Chinese investors that their investments are protected and safe. At the same time, he appealed to Nigerians to be patient and have confidence in his government’s strategic efforts to revitalize the economy, create jobs, and deliver long-term prosperity.
He said President Tinubu made it clear that investors’ interests come first and assured them that their investments would be protected and guaranteed.
“Investors can enter and exit the market with confidence, knowing that their investments are protected and their rights respected. This commitment underscores our administration’s focus on job creation, economic growth, and sustainable development,” Ekpo said.
BCIG is a leading petrochemical company in the carbon-neutral era and is committed to building a new generation of neutral, open, and inclusive global IT infrastructure platforms. CADFund is China’s first equity fund focused on investing in Africa, with the aim of promoting Africa’s industrialization process and enhancing Africa’s sustainable development capacity through investment.
