Chemical Blog

BP Oil to offtake methanol from large project in Nigeria

BP Oil International, a BP subsidiary, has signed an agreement to offtake almost the entire output from a world-scale methanol project planned by Brass Fertilizer and Petrochemical Co. (Abuja, Nigeria) in Nigeria. BP tells CW that it has agreed to a methanol offtake deal with Brass for a period of 10 years. “We expect to lift over 1.5 million metric tons annually—primarily for sale into European and American markets,” the company says. BP, a major consumer of methanol for its acetyls business, has declined to provide further details.

The deal, valued at about $6 billion over its life span of 10 years, is a major step in Brass’s plans to seek finance from foreign lenders and investors. The company is working on a two-phase project at Brass Island, Bayelsa State, with the first phase costing an estimated $4 billion and due onstream in 2020. It will include 1.66-million metric tons/year (MMt/y) methanol and 1.3-MMt/y urea production facilities. Phase one will also include a dedicated export jetty and a 300-million standard cubic feet/day (mmscf/d) gas-processing plant. Brass has also secured a 25-year, 300-mmscf/d gas supply deal with Shell Petroleum Development Co. of Nigeria, a Shell subsidiary.

The methanol project is crucial to Nigeria’s agricultural and industrial sectors. It will boost the country’s self-sufficiency in fertilizers and methanol-based products.