. Landmark $3.3bn industrial park, methanol plant deal signed with CRBC
. Cosco Shipping Lines contracted for vessel transportation
By Tochukwu Bliss, Abuja
In a significant breakthrough for Nigeria’s Brass Fertilizer Petrochemical Company Limited (BFPCL), the long-awaited Gas Sales and Purchase Agreement (GSPA) with its gas supplier, the NNPC/SPDC Joint Venture (JV) is nearing conclusion, paving the way for the project’s financial close and commencement of the execution phase.
After years of delays, the GSPA is expected to be finalized before this month’s end, and financial close achieved by December 31, marking a major milestone in the project’s journey and setting the stage for a significant boost to Nigeria’s petrochemical industry.
The Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed this yesterday, according to a statement by the Spokesperson, Louis Ibah.
Mr. Ekpo also announced that Bohai Chemical Industries Group (BCIG) and China Africa Development Fund (CADFund), in collaboration with their JV partners, have expressed their commitment to jointly invest in the Brass Methanol Project and facilitate immediate commencement of construction works.
This is as BFPCL and China Road and Bridge Corporation (CRBC) have executed Project Agreements for the $3.3billion Brass Industrial Park, Methanol Plant and Gas Gathering Pipelines with Associated Facilities.
The deal also included the signing a Shipping Vessels Acquisition and Joint Venture Agreement for 16 new 50,000MT methanol-powered shipping vessels with COSCO Shipping Lines Co. Ltd., reputed as one of the largest shipping companies worldwide.
The statement added that “The Framework Agreement with COSCO will see the construction of 16 vessels, valued at about $900million, dedicated for the evacuation and transportation of methanol and other products from the Brass Methanol Plant to various global destinations. COSCO is.
The Minister informed that these significant gains were courtesy of BFPCL’s strategic engagements with Chinese investors during the recent state visit of President Bola Tinubu to China, which he participated in.
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.
Mr. Ekpo was quoted as saying: “During the visit, I held fruitful discussions with key stakeholders, including BCIG and CADFund, which have now expressed commitment to invest in the $3.3billion Brass Methanol Project in Bayelsa State.
“On this same project, I also want to state that we have expedited the completion of the Gas Sales and Purchase Agreement (GSPA) between BFPCL and Shell Petroleum Development Company (SPDC) Limited Joint Venture, a major breakthrough that paves the way for the project’s financial close and execution phase.”
The Minister’s visit to China has set the stage for a significant boost to Nigeria’s petrochemical industry, demonstrating the government’s commitment to attracting investments and driving economic growth.
Mr. Ekpo further assured the Chinese investors of the protection and security of their investments, while also appealing to Nigerians to remain patient and confident in the government’s strategic initiatives aimed at revitalising the economy, driving job creation, and unlocking long-term prosperity.
According to him, President Tinubu has made it clear that investors’ interests are paramount, ensuring that their investments are safeguarded and guaranteed.
“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,” Mr. Ekpo said.
