Nigeria’s petrochemical industry is expected to grow as major deals with Chinese investors are finalized, paving the way for the launch of the Brass Methanol Project.
This was disclosed in a statement released on Tuesday by Louis Ibah, the minister of state for petroleum resources (gas).
In order to position the project for financial closure and execution, Brass Fertilizer Petrochemical Company Limited announced that it 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.
After years of delays, the GSPA is anticipated to be finalized by September 30, 2024, paving the way for the $3.3 billion Brass Methanol Project to start construction.
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The signing of Project Agreements for the Brass Industrial Park, Methanol Plant, and Gas Gathering Pipelines between BFPCL and the China Road and Bridge Corporation supports this development.
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Furthermore, BFPCL has obtained a Joint Venture and Acquisition of Shipping boats Agreement with COSCO Shipping Lines Co Ltd for the purchase of sixteen new 50,000MT methanol-powered boats, with a total estimated value of $900 million.
These ships will carry goods from the Brass Methanol Plant, including methanol, to locations throughout the world. One of the biggest shipping firms in the world, COSCO, will be essential to the project’s export activities.
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The advances were revealed by Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), who attributed the catalyst for these agreements to President Bola Tinubu’s recent state visit to China.
“I had productive conversations with important stakeholders during the visit, such as BCIG and CADFund, who have now committed to funding the US$3.3 billion Brass Methanol Project in Bayelsa State,” stated Ekpo.
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Bohai Chemical Industries Group and the China Africa Development Fund are two of the Chinese investors interested in this project; they have committed to working with their joint venture partners to start building on the methanol project right away.
The finalized GSPA between BFPCL and the SPDC Limited JV was also emphasized by Ekpo, who described it as “a breakthrough that paves the way for the project’s financial close and execution phase.”
By December 31, 2024, the project’s financial conclusion is anticipated, paving the way for the expansion of the economy and the creation of jobs.
Ekpo emphasized that the goal of the government’s initiatives is to boost foreign investment and revive Nigeria’s petrochemical sector.
Ekpo also reaffirmed to Chinese investors that their capital will be adequately safeguarded, underscoring the government’s emphasis on fostering international collaborations.
“Knowing that their money is secure and their rights are upheld, investors can enter and exit the market with confidence. This pledge demonstrates the administration’s emphasis on sustainable development, economic expansion, and job creation, according to Ekpo.
Leading global petrochemicals company BCIG is dedicated to creating next-generation, neutral, open, and inclusive technology infrastructure, while China’s top equity fund, CADFund, focuses on investments in Africa with the goal of advancing industrialization and sustainable development throughout the continent.
Expected to be a major contributor to Nigeria’s industrialization effort, the $3.3 billion Brass Methanol Project is another important collaboration between Nigeria and China in the construction of critical infrastructure.
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