NCDMB, NNPC, others seal pacts on methanol project

NCDMB, NNPC, others seal pacts on methanol projectThe Nigerian Content Development and Monitoring Board (NCDMB), Nigerian National Petroleum Corporation (NNPC), Brass Fertilizer and Petrochemical Company Limited and DSV Engineering have signed agreements for the construction of 10,000 per day methanol plant and a gas processing plant.

The agreement was jointly signed in Abuja by the Executive Secretary of NCDMB, Simbi Wabote; the Chief Operating Officer, Gas and Power, NNPC, Usman Yusuf and the Managing Director of BFPCL, Chief Ben Okoye, signed for their respective organisations.

The 500 million standard cubic feet per day gas processing plant will be sited in Odeama, Brass, Bayelsa State.

The first agreement was the Accession Agreement between BFPCL, DSV Engineering, NNPC and the NCDMB Capacity Development Intervention Company Limited by Guarantee. The deal confirmed that NCDMB has subscribed to the terms and conditions contained in the company’s share subscription agreement.

The second agreement was the Share Subscription Agreement among BFPCL, DSV Engineering and the NCDMB Capacity Development Intervention Company Limited by Guarantee. The agreement confirmed the allotment of 18 per cent authorised share capital of Brass Fertilizer and Petrochemical Company Limited to NCDMB.

The Executive Secretary of NCDMB highlighted the need for indigenous institutions and companies to initiate projects that would create in-country value and employment opportunities for young Nigerians.

He insisted that the Nigerian oil and gas industry could not continue to wait for international operating oil and gas companies to lead project development.

The NCDMB boss maintained that creating job opportunities for young Nigerians was the best strategy to curtail restiveness and insecurity in the polity.

He hinted that the methanol project provides opportunities to add value in-country and further diversify the utilisation of the nation’s gas resources.

Wabote said the 10,000 tonnes per day methanol plant will, upon completion, bring Nigeria onto the world map as one of the top 10 producers of methanol.

“The opportunities provided by this project in jobs creation, gas utilisation, and local availability of methanol for primary and secondary users, are massive and we are excited to catalyze the realisation of the project,” he added.

Wabote also said that the project would create 15,000 jobs during the construction stage and additional 5,000 jobs during the operations phase.

He indicated that methanol can be used for different purposes and can also serve as a key chemical agent in pharmaceutical and agro-chemical industries.

The Executive Secretary commended the NNPC for its role in getting the project to the current stage, expressing hope that the partnership would help to drive the methanol plant to completion.

The Chief Operating Officer, Gas & Power, NNPC, Mr. Usman Yusuf, expressed delight that the project was in sync with President Muhammadu Buhari’s recent declaration of a decade of gas and would help to correct the current anomaly whereby 100 percent of the nation’s methanol needs are currently imported.

He maintained that that gas was becoming increasingly important to Nigeria’s sustainability and would also play a key role in the energy transition.

He added that gas is key to food processing and can lead the nation to food sufficiency, industrialization, increase in Gross Domestic Product and power sufficiency.
He further explained that the two methanol projects would help Nigeria save foreign exchange and significantly enhance local production.

Yusuf congratulated the NCDMB for supporting the methanol projects, which 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.

On his part, the Managing Director of BFPCL, Ben Okoye stated that methanol can be used to produce 67 items that are used in households daily.

He stated that the company had acquired 600 hectares of land and aspires to attract other entities to the Brass Free Zone.

Okoye stressed that the project would become the biggest methanol plant in sub-Saharan Africa.

It would be recalled that the NCDMB, NNPC and DSV Engineering on Friday had in January 2021 signed the Final Investment Decision (FID) for the construction of 10,000 tonnes per day methanol production plant by the Brass Fertiliser and Petrochemical Company Ltd (BFPCL), committing equity investment of $670 million to the deal.

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