Emmanuel Addeh Abuja
The federal government yesterday announced that the take-off of the Brass Fertiliser Petrochemical Company Limited (BFPCL) was at its final stages, stressing that a $3.3 billion deal for an industrial park on the facility located in Bayelsa, had been reached.
Describing it as a significant breakthrough for the company, a statement by Louis Ibah, spokesman to the Minister of State (Gas), Ekperikpe Ekpo, said the long-awaited Gas Sales and Purchase Agreement (GSPA) with its gas supplier, the NNPC/SPDC Joint Venture (JV) was nearing conclusion.
According to the release, this has now paved the way for the project’s financial close and commencement of the execution phase.
After years of delays, the GSPA, the government said, is expected to be finalised before September 30, 2024, marking a major milestone in the project’s journey and setting the stage for a significant boost to Nigeria’s petrochemical industry.
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.
It also signed a Shipping Vessels Acquisition and Joint Venture Agreement for 16 new 50,000MT methanol powered shipping vessels with COSCO Shipping Lines Co Ltd.
The framework agreement with COSCO, the statement from the ministry said, will see the construction of 16 vessels, valued at about $900 million, dedicated for the evacuation and transportation of methanol and other products from the Brass methanol plant to various global destinations.
It noted that COSCO is one of the largest shipping companies in the world.
Ekpo was quoted by the statement as having disclosed this on Tuesday while further announcing that Bohai Chemical Industries Group (BCIG) and China Africa Development Fund (CADFund) in collaboration with their Joint Venture (JV) partners have expressed their commitment to jointly invest in the Brass Methanol Project and facilitate immediately commencement of construction works.
Ekpo said thee significant gains were courtesy of BFPCL’s strategic engagements with Chinese investors during the recent state visit of President Bola Ahmed Tinubu to China, which he participated in.
During the visit, I held fruitful discussions with key stakeholders, including BCIG and CADFund, which have now expressed commitment to invest in the $3.3 billion Brass Methanol Project in Bayelsa State,” said Ekpo.
“On this same project, I also want to state that we have expedited the completion of the 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,” he added.