Brass Fertilizer and Petrochemical Company Limited, BFPCL, has closed a $6 billion deal with BP Oil International limited, London. This deal gives BP Oil the exclusive right to buy all the methanol that will be produced from phase 1 of the project; and will run for 10 years.

The contract was recently signed at BP office in London, and is key to securing financing from lenders and investors. It will lead to a financial closure of the project.

According to Chief Ben Okoye, Vice chairman of BFPCL, the methanol plant will create 20,000 jobs for the host community. There will be 15,000 indirect jobs during construction and 5,000 direct jobs on completion.

BFPCL has already signed a gas purchase contract for 300 mmscf/d from Shell Petroleum Development Company of Nigeria, for 25 years.

The cost of this project is expected to be about $6 billion and construction will be in two phases.

PHASE 1

The first phase of this project is scheduled for completion in 2020, and will produce 1.66 million metric tonnes (MT) of ethanol; and 1.3 million metric tonnes of Urea per annum. A dedicated exports Jetty and a 300 mmscf/d gas processing plant will also be part of this phase. The project will generate an annual turnover of $1.5 billion.

PHASE 2

The second Phase of this project will commence five years after phase 1. It will cost $ 1 billion to build; and will double the company’s urea capacity with a second production unit of 1.3 million metric tonnes per annum.

Brass Fertilizer and Petrochemical company project is in Brass, Bayelsa State. The company is very strategic to Nigeria’s economy; and it will help the country achieve self sufficiency in fertilizer and methanol production.

The company has expressed gratitude to the Federal Government of Nigeria(FGN) for the tremendous support. Its also extends same gratitude to the Nigerian National Petroleum Corporation (NNPC), the Central Bank of Nigeria (CBN) and project developers.