Investors reach shareholding pact on $670m methanol project

Advertisements

Sopuruchi Onwuka

Key investors in Nigeria new methanol projects have reached closure on share subscription and allocation agreements in the development of 10,000 tonnes per day methanol plant and the 500 million standard cubic feet per day gas processing plant in Odeama, Brass, Bayelsa State.

The partners in the venture are the Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian National Petroleum Corporation (NNPC), Brass Fertilizer and Petrochemical Company (BFPC) Limited and DSV Engineering Limited.

Representing their respective institutions, the Executive Secretary of NCDMB, Mr. Simbi Kesiye Wabote, an engineer; Chief Operating Officer, Gas & Power, NNPC, Mr. Usman Yusuf; and the Managing Director of BFPCL, Chief Ben Okoye; signed the agreements.

Oracle Intelligence reports that the partners had in January signed the Final Investment Decision (FID) for the plant, committing equity investment of $670 million.

The pacts were made known by the Corporate Communications department of the NCDMB in a media statement.

The partnership deals include an Accession Agreement between BFPCL, DSV Engineering, NNPC and the NCDMB Capacity Development Intervention Company Limited by Guarantee. It confirms that NCDMB has subscribed to the terms and conditions contained in the company’s Share Subscription Agreement.

The Share Subscription Agreement confirms allotment of 18 percent of the authorized share capital of the Brass Fertilizer and Petrochemical Company Limited to NCDMB.

Mr Wabote explained that the 10,000tonnes/day plant would position Nigeria as one of the top-10 producers of methanol, diversify the utilization of the nation’s gas resources and spur productivity in pharmaceutical and agro-chemical industries.  .

“The opportunities provided by this project in jobs creation, gas utilization, and local availability of methanol for primary and secondary users, are massive and we are excited to serve as a catalyst for the realization of the project,” he said.

Wabote also said that the project would create 15,000 jobs during the construction stage and additional 5000 jobs during the operations phase. He expressed hope that the partnership would help to drive the methanol plant to completion.

The Chief Operating Officer, Gas & Power, NNPC, Mr. Usman Yusuf; said the project would help displace methanol imports, help Nigeria save foreign exchange, and guarantee Nigeria’s food sufficiency, industrialization, increase in Gross Domestic Product and power sufficiency.

He added that the two Methanol projects would create a gas hub, petrochemical industry, fertilizer plants and condensate refinery.

He also expressed delight that the funding for the critical project was being sourced in-country.

The Managing Director of BFPCL, Chief Ben Okoye stated the company has acquired 600 hectares of land and aspires to attract other entities to the Brass Free Zone. He said the project would become the biggest methanol plant in sub-Saharan Africa.