Nigeria, China partner on Brass Methanol Project, costing $3.3bn
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo
The $3.3 bn Brass Methanol Project is expected to play a crucial role in Nigeria’s industrialisation drive, marking another significant partnership between Nigeria and China in the development of key infrastructure.
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.
The Chinese investors involved include Bohai Chemical Industries Group and the China Africa Development Fund, which have pledged to partner with their Joint Venture collaborators to immediately commence construction works on the methanol project.
Ekpo also highlighted the importance of the finalised GSPA between BFPCL and the SPDC Limited JV, calling it “a breakthrough that paves the way for the project’s financial close and execution phase.”
Financial closure for the project is expected by December 31, 2024, setting the stage for the creation of jobs and increased economic growth.
Ekpo emphasised that the government’s efforts are geared toward attracting more investments and revitalizing Nigeria’s petrochemical industry.
Ekpo also assured Chinese investors that their investments will be well-protected, reflecting the government’s focus on creating a conducive environment for international partnerships.
“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, a leader in petrochemicals, is committed to developing new-generation neutral, open, and inclusive global technology infrastructure, while CADFund is China’s premier equity fund focusing on investments in Africa, aimed at boosting industrialization and sustainable development across the continent.
