L-R: President Bola Tinubu and President Ci Jinping on Tuesday at the Great Wall, Beijing.
Nigeria’s Brass Methanol Project is set for liftoff as key agreements are finalised with Chinese investors, boosting the country’s petrochemical industry.
This was revealed in a statement issued by the Spokesman for the Minister of State Petroleum Resources (Gas), Louis Ibah, on Tuesday.
According to the statement, Brass Fertilizer Petrochemical Company Limited has reached the final stages of the Gas Sales and Purchase Agreement with its gas supplier, the Nigerian National Petroleum Company and Shell Petroleum Development Company Joint Venture, positioning the project for financial closure and execution.
The GSPA is expected to be finalised by September 30, 2024, after years of delays, setting the stage for the $3.3bn Brass Methanol Project to begin construction.
This development is bolstered by the signing of Project Agreements between BFPCL and the China Road and Bridge Corporation for the Brass Industrial Park, Methanol Plant, and Gas Gathering Pipelines.
Additionally, BFPCL has secured a Shipping Vessels Acquisition and Joint Venture Agreement with COSCO Shipping Lines Co Ltd for 16 new 50,000MT methanol-powered vessels, valued at approximately $900m.
These vessels will transport methanol and other products from the Brass Methanol Plant to global destinations. COSCO, one of the world’s largest shipping companies, will play a pivotal role in the project’s export operations.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, announced the developments, crediting the recent state visit of President Bola Tinubu to China for catalyzing these agreements.
“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,” said Ekpo.
