The long-awaited Gas Sales and Purchase Agreement (GSPA) between Brass Fertilizer Petrochemical Company Limited (BFPCL) and NNPC/SPDC Joint Venture is nearing conclusion, paving the way for the project’s financial close and execution phase.
After years of delays, the GSPA is expected to be finalized before September 30, 2024. This milestone follows the execution of Project Agreements with China Road and Bridge Corporation (CRBC) for the $3.3 billion Brass Industrial Park, Methanol Plant, and Gas Gathering Pipelines.
Additionally, BFPCL signed a Shipping Vessels Acquisition and Joint Venture Agreement with COSCO Shipping Lines Co Ltd for 16 new 50,000MT methanol-powered shipping vessels, valued at $900 million.
Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, announced that Bohai Chemical Industries Group (BCIG) and China Africa Development Fund (CADFund) will jointly invest in the Brass Methanol Project.
‘During the recent state visit of President Bola Ahmed Tinubu to China, I held f
ruitful 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.
‘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.’
With the GSPA expected to be finalized before September 30, 2024, and financial close achieved before December 31, 2024, Ekpo assured Chinese investors of protection and security for their investments.
‘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 is a leading petrochemical company, while CADFund i
s China’s first equity fund focusing on investment in Africa.
Source: Voice of Nigeria