The Nigerian National Petroleum Corporation (NNPC) and its partners, Brass Fertiliser and Petrochemical Company Limited, DSV Engineering Limited and the Nigerian Content Development and Monitoring Board took the Final Investment Decision (FID) for the construction of a $3.6billion Brass Fertilizer and Petrolchemical gas processing and methanol plant at the weekend.
The plant is known as Brass Fertiliser and Petrochemical Company Limited (BEPCL).
According to the partners that signed the contract in Abuja, BEPCL is a special purpose vehicle with the primary objective of monetising the abundant gas reserves in Nigeria.
They noted that it will fast-track the development and construction of the first ever methanol plant in Nigeria in a designated oil and gas free trade zone in Odioama, Brass Island, Bayelsa State.
Speaking, the Group Managing Director, NNPC, Mele Kyari, who signed on behalf of the corporation, explained that the BFPCL methanol project is of strategic importance to the Federal Government on account of its ability to support human economic development.
The NNPC boss noted that this will be through skills acquisition and employment opportunities, as the plant would create about 30,000 jobs during construction and about 5,000 to 6,000 during operation.
He added that the company would further help in reducing overall carbon emission to the environment.
His words: “The project is consistent with the aspirations of the Federal Government for industrialisation through the exploitation of the nation’s huge gas reserves.
“This is with a view for generating even more revenue from gas monetisation beyond crude oil for sustainable economic growth of the country.”
The Managing Director, BFPCL, Ben Okoye, said a products offtake agreement had been negotiated with international offtakers for the sales and marketing of the methanol produced from the project.
He said, “The BFPCL project, being a Lump Sum Turnkey Basis of $3.6bn, has a funding structure of 70 per cent debt and 30 per cent equity and is expected to be operational by 2024.”
Source: The Nation