Ekpo hails BFPCL, COSCO methanol vessel acquisition deal, set to drive economic growth and job creation

Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, has welcomed a major vessel acquisition deal between Brass Fertilizer Petrochemical Company Limited (BFPCL) and COSCO Shipping Lines Co Ltd, highlighting its potential to promote Nigerian content and drive economic growth.

The deal, which involves the construction of 16 methanol-powered shipping vessels, valued at $900 million, is set to increase Nigerian companies’ participation in the maritime space, aligning with the Federal Government’s drive to encourage indigenous involvement in critical sectors of the economy.

Ekpo, in a statement by his spokesman, Louis Ibah, praised the agreement as a “significant milestone” that will create more job opportunities, reduce capital flight, and boost Nigeria’s GDP.

The 16 methanol carriers are to be powered by methanol fuel with delivery of the first vessel by the last quarter of 2028, and they would be dedicated to the evacuation and transportation of methanol and other products from the Brass Methanol Plant in Bayelsa State to various global destinations.

The Gas Ministry said the partnership between BFPCL and COSCO, one of the world’s largest shipping companies, demonstrates the Federal Government’s commitment to promoting Nigerian content and driving economic growth and development.

Ekpo said the use of methanol as fuel for the vessels is in line with the Federal Government’s commitment to international decarbonization and net zero targets and to achieve its net zero goals as agreed under the Paris Climate Change Agreement

“The construction of these 16 methanol-powered vessels is a significant investment in Nigeria’s future.
The use of methanol as fuel for these vessels aligns with our decarbonization goals and demonstrates our dedication to reducing carbon emissions and achieving net zero targets. We are proud to be at the forefront of this innovative project and look forward to seeing the benefits it will bring to the country,” said Ekpo.

BFPCL and China Road and Bridge Corporation (CRBC) also recently executed Project Agreements for the $3.3billion Brass Industrial Park, Methanol Plant and Gas Gathering Pipelines with Associated Facilities.

And after years of delay, the long-awaited Gas Sales and Purchase Agreement (GSPA) with its gas supplier, the NNPC/SPDC Joint Venture (JV) is expected to be finalized before September 30, 2024, marking a major milestone in the project’s journey and paving the way for the project’s financial close and commencement of the execution phase.