$900m BFPCL, COSCO vessel deal will reduce capital flight — Minister

The Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, has said the vessel acquisition deal between Brass Fertiliser Petrochemical Company Limited (BFPCL) and COSCO Shipping Lines Co Ltd, will 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, a statement by the minister’s spokeswoman, Louis Iba said.

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

The 16 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.

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According to the minister, 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 was in line with the federal government’s commitment to international decarbonisation 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 decarbonisation goals and demonstrates our dedication to reducing carbon emissions and achieving net zero targets,” he added.