Nigeria partners with China on $3.3bn Brass Methanol Project to boost economic growth, industrialization

Nigeria’s petrochemical industry is set for a significant boost as the $3.3 billion Brass Methanol Project moves closer to realization, thanks to key partnerships with Chinese investors.

This major development was revealed in a statement from Louis Ibah, the spokesman for the Minister of State Petroleum Resources (Gas), on Tuesday.

Brass Fertilizer Petrochemical Company Limited (BFPCL) is nearing completion of the Gas Sales and Purchase Agreement (GSPA) with its gas supplier, the Nigerian National Petroleum Company (NNPC) and Shell Petroleum Development Company (SPDC) Joint Venture.

This agreement will enable the project to achieve financial closure and begin construction after years of anticipation. The GSPA is expected to be finalized by September 30, 2024, setting the stage for Nigeria’s economic transformation.

In a further boost, Project Agreements have been signed between BFPCL and the China Road and Bridge Corporation for the Brass Industrial Park, Methanol Plant, and Gas Gathering Pipelines. This solidifies China’s commitment to supporting Nigeria’s industrial ambitions.

Additionally, BFPCL has secured a Shipping Vessels Acquisition and Joint Venture Agreement with COSCO Shipping Lines Co. Ltd. for 16 new methanol-powered vessels, worth approximately $900 million. These vessels, each with a capacity of 50,000 metric tons, will transport methanol and other products to global markets. COSCO, one of the world’s largest shipping companies, will play a critical role in the project’s export operations, further expanding Nigeria’s reach in international trade.

Chinese investors, including Bohai Chemical Industries Group and the China Africa Development Fund, have also committed to partnering in the immediate commencement of construction for the methanol project. Their involvement reflects growing confidence in Nigeria’s investment climate and the project’s potential to drive industrial growth.

Minister of State for Petroleum Resources (Gas), Ekpo, called the finalization of the GSPA a “breakthrough,” as it will pave the way for the financial close and execution phase of the project. The project is expected to achieve financial closure by December 31, 2024.

Ekpo also assured investors that their interests would be well-protected, reinforcing the Nigerian government’s commitment to creating a stable and attractive environment for international partnerships. He emphasized that the government’s focus is on job creation, economic growth, and sustainable development.

The $3.3 billion Brass Methanol Project marks another significant milestone in Nigeria’s industrialization drive. The collaboration between Nigeria and China is expected to play a pivotal role in developing key infrastructure, fostering growth, and positioning Nigeria as a leader in the global petrochemical industry.