Investors

Unique Opportunity to Invest in a Low Carbon Fully Integrated Greenfield Methanol Plant in Nigeria

  • Brass & Fertilizer Petrochemical Company Limited (“BFPCL”) is developing a methanol plant with production capacity of 10,000 mtpd (2 x 5,000 mtpd) in Nigeria.
  • Fully integrated, end-to-end Project, from feedstock production to sale of end-product, via partnership with highly credible parties
  • Sponsors group comprises experienced gas operator and strategic government entities providing strategic support for the Project
  • Project has strong Environmental, Social, and Governance alignment with the Government’s economic diversification agenda and “Nigeria Decade of Gas”
  • Standard Chartered Bank (“SCB”) is acting as a sole financial adviser & Global Co-Ordinator to Brass in connection with this Project

Attractive Project Location with Access to Global Markets Providing the Business and Investors with Several Benefits  

  • Nigeria’s location on the west coast of Africa, positions the Project to serve the growing, global methanol market
  • The Project is situated in the Bayelsa Free Zone Area on the coast of Brass Island, Bayelsa State, Nigeria
    • Allocated 667.5-hectare of land for the Project by the Bayelsa State Government with adequate room for expansion
    • 99-year lease granted via accordance of Statutory Certificate of Occupancy (C of O)
  • Eligible for export incentives under the Oil and Gas Free Zone Authority Act, 1996
    • Development in a Free Trade Zone provides numerous benefit

Project / Investor Benefits

Custom / Tax Incentives

  • Exemption from value added tax, withholding tax, corporate tax, and capital gains tax
  • Exemption from customs duty payable for goods stored and exported
  • 75% import duty rebate
  • Allowance of expeditious clearance of cargoes

Business Incentives

  • 100% repatriation of capital investment
  • Remittance of profits and dividends are allowed
  • No import or export licenses required

Immigration Incentives

  • Free movement in and out of the Zone
  • Immigration fast-track procedure
  • No quota regime for expatriate employment

Cashflow Benefits

  • No custom duty applicable within the free zone
  • Reduces Investor-oriented policies

Project Site

  • The estimated geographical coordinates of the plant’s location are latitude: 4.30775 and longitude 6.41023
  • Dedicated SBM connecting the methanol production facility to the loading point for vessels to export the methanol
  • Provides a low-cost alternative to a conventional jetty

Key Investment Highlights

Geographically Advantaged to be a Competitive Global Methanol
Supplier in an Industry with Strong Demand Fundamentals.

  • Global methanol demand is expected to grow at a (2019-2025) CAGR of 3.6% to 114,146 kt, before growing further by a CAGR (2025-2042) of 4% to 214,266 kt
  • Methanol demand from China has grown at a (2000-2019) CAGR of 17.5% on the back of rapid industrialization
  • Solid demand growth across China and India will enable the region to remain net importers making this a prime methanol export market
Global Mthanol Demand

Designed to Meet International Environmental, Social &
Governance Standards Whilst Securing A Lower Carbon Future

  • Brass is designed to meet international E&S standards- Equator Principles, IFC Performance Standards, European Investment Bank E&S Standard, World Bank General EHS Guidelines, etc
  • Extensive Environmental and Social Impact Assessment (ESIA) covering the entire Project location and the 38km gas pipeline route
  • Methanol as transition fuel contributes to the reduction of overall global carbon emission and is increasingly becoming a cleaner multipurpose gasoline substitute

Environmental

The journey from conventional to carbon neutral emissions zone is incremental:

  • Project reduces gas flaring by utilizing some gas that would have been flared.
  • The GHG bye product with methanol production due to the use of non-renewable natural resource will be captured for storage and commercialization.
  • BFPCL has developed a strategy that aligns with Net Zero and ESG aspirations.
  • Project would result in no displacement of communities or persons. Nearest community is about 3km away.
More

Social

  • Project is expected to create employment opportunities for about 15,000 workers during construction phase and generate 5,000 direct and indirect jobs
  • Labour management procedures and impacts, adequately identified
  • Despite no indigenous peoples in Project area, Project consent was sought from community members

Governance

  • Brass will follow an Environmental and Social Management Plan (ESMP)

The ESMP will;

  • Ensure compliance with all stipulated legislation on protection of the environment
  • Ensure progressive reduction of the biophysical and socio-economic impacts on the environment
  • Ensure all mitigation enhancement measures identified in the ESIA are continually adhered to

Well Structured Project with Visibility to Debt Funding Working
Alongside Reputable Counterparties

  • The Project sponsors – DSV, NCDMB and NNPC bring significant project development experience as well as technical and financial strength to the Project
  • EPCC contract award process in advanced and near finalization.
  • Gas supplier – SPDC JV, a pioneer and innovative leader in the upstream sector in Nigeria
  • Substantial interest for offtake has been shown by companies including BP.
  • Simplified project structure with gas pipeline, gas processing plant, methanol plants and ancillary facilities (including a Single Buoy Mooring) integrated into one Project
  • Long term gas supply agreement finalised with SPDC JV
  • Project has obtained necessary approvals/permits, including environmental approvals, land lease permits and approval from relevant regulatory agencies
  • The transaction has been structured to enable robust allocation of risks across project parties through bespoke long-term commercial agreements, incorporating international contracting standards. The Project risks are further mitigated by the optimal selection of Project size and technology, ensuring that BFPCL will be a competitive producer of methanol
  • The EPCC contract will be structured as a fixed price LSTK contract, thereby mitigating the risk of cost overrun attributable to the Project Company. The EPCC contractor is also liable to pay LDs in case of delays and failure of the Project to meet minimum performance guarantees
  • SPDC JV has long-term OMLs covering five gas fields from which the gas will be exclusively supplied to the Project. GCA has undertaken a detailed gas diligence study and confirmed sufficient gas reserves in place for the Project over the long term. The involvement of NNPC as both a key investor in the Project and the SPDC JV / upstream gas fields provides comfort of gas supply