20 January 2017, Lagos – A major breakthrough has been recorded in the development of the first phase of the Brass fertilizer project, as Brass Fertilizer & Petrochemical Company Limited has signed a $6bn offtake deal with BP Oil International Limited.
It added that the agreement was a key condition for securing foreign direct investment from the project lenders and international investors.
The statement quoted the Executive Vice-Chairman of the BFPCL, Chief Ben Okoye, as saying that attracting a major international player like BP bore testimony to the tremendous support for the project by the Federal Government, the Nigerian National Petroleum Corporation, and the Central Bank of Nigeria, as well as the hard work and commitment of the project developers.
He described the agreement as a significant milestone in the development of the project, adding that it paved the way to finance Phase 1 of the Brass fertiliser project.
According to the statement, the project is designed to be built in two phases, with the first phase coming on stream in 2020 expected to produce 1.66 million metric tonnes of methanol and 1.3 million MT of urea per annum.
“Phase 1 also includes a dedicated export jetty and a gas processing plant. The project has also secured 25 years 300 mmscf/d gas supply from the Shell Petroleum Development Company of Nigeria Limited.
“The Brass Fertiliser plant is located in Brass Island, Bayelsa State, and on completion, it is expected to generate an annual turnover of $1.5bn. The project is extremely strategic to the country’s agricultural and industrial sectors. It will contribute to the country’s self-sufficiency in fertiliser and methanol-based industrial raw materials,” it stated.