According to the statement, Brass Fertilizer Petrochemical Company Limited (BFPCL) has reached the concluding phase of the Gas Sales and Purchase Agreement (GSPA) with its gas supplier, a joint venture between the Nigerian National Petroleum Company (NNPC) and Shell Petroleum Development Company (SPDC). This milestone brings the project closer to financial closure and subsequent execution. The GSPA is expected to be finalized by September 30, 2024, following years of delays, setting the stage for construction to begin on the ambitious project.
The momentum has been further strengthened by the signing of project agreements between BFPCL and the China Road and Bridge Corporation (CRBC), which will oversee the construction of the Brass Industrial Park, Methanol Plant, and Gas Gathering Pipelines. Additionally, BFPCL has secured a joint venture agreement with COSCO Shipping Lines Co. Ltd for the acquisition of 16 new methanol-powered vessels, valued at approximately $900 million. These vessels, with a capacity of 50,000 MT each, will transport methanol and other products from the Brass Methanol Plant to international markets. As one of the world’s largest shipping companies, COSCO will play a key role in the project’s export operations.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, attributed these developments to the state visit of President Bola Tinubu to China, which paved the way for the agreements. Ekpo shared that discussions with key Chinese stakeholders, including Bohai Chemical Industries Group (BCIG) and the China Africa Development Fund (CADFund), led to their commitment to invest in the Brass Methanol Project located in Bayelsa State.
“The finalized GSPA between BFPCL and the SPDC joint venture is a breakthrough that clears the path for the financial closure and execution phase of the project,” said Ekpo, emphasizing the importance of this step.
The financial closure of the project is expected to be completed by December 31, 2024, setting the foundation for job creation and economic growth in Nigeria. The project marks a significant partnership between Nigeria and China, contributing to the country’s ongoing industrialization efforts.
Ekpo assured Chinese investors that their investments will be secure, reflecting the Nigerian government’s commitment to creating an environment conducive to international partnerships. “Investors can operate with confidence, knowing their rights and investments are protected. This aligns with our administration’s focus on job creation, economic growth, and sustainable development,” he added.
With BCIG’s leadership in petrochemicals and CADFund’s focus on boosting industrialization and sustainable development across Africa, the $3.3 billion Brass Methanol Project is poised to play a pivotal role in Nigeria’s industrial growth.
