BP Agrees $6 Billion Methanol Offtake Deal
BP Oil International, a subsidiary of UK energy giant BP, has signed an agreement to take almost the entire output from a new methanol plant being built by Nigeria’s Brass Fertilizer & Petrochemical Company.
The contract is for a term of 10 years and is valued in excess of $6 billion when the plant starts commercial operation in 2020. BP expects to sell the methanol mostly in European and American markets.
Located on Brass Island in Bayelsa State, which is in the Niger Delta, the gas-based complex is expected to produce 1.66 million t/y of methanol and 1.3 million t/y of urea. Brass Fertilizer said the project represents a major boost in the manufacturing sector in Nigeria, where implementation of gas-based projects has been far below the country’s potential.