The Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian National Petroleum Corporation (NNPC) and ZED Energy have signed a shareholders agreement to build a new 50 million L terminal in Brass in Bayelsa State, Nigeria
The partners say that the Brass Petroleum Products Terminal (BPPT) will make refined petroleum products available for communities in the Niger Delta at standard prices. Currently, transporting refined products into the area is extremely expensive, leading to widespread illegal refining, which is highly polluting. By bringing down the price of legitimate refined products, the partners hope to solve the problem of illegal refining.
The terminal will cost an estimated NGN 10.5 billion (€21 million), will have a two-way product jetty and be able to accommodate road and marine loading. It will store automotive gas oil (AGO), premium motor spirit (PMS), dual purpose kerosene (DPK) and aviation turbine kerosene (ATK). The partners expect the terminal to be operational ‘before 2023’.
ZED will operate the terminal, and hold a 40% stake, with NCDMB and NNPC each holding a 30% stake. BPPT will be co-located with the new Energy Infrastructure Park and the Brass Fertiliser and Petrochemical Company (BFPCL). NCDMB executive secretary Engr Simbi Kesiye Wabote says that the developments will create a free trade zone, bringing down the cost of development and the products, as the raw materials are immediately available. Construction of the terminal will generate up to 1,000 direct jobs, and operations will generate another 5,000 direct and indirect jobs
Bayelsa State produces 40% of Nigeria’s onshore and swamp crude oil and hosts some of its deepwater prospects and assets, but Bala Wunti, the group general manager of Nigeria’s National Petroleum Investment Management Services (NAPIMS) and project lead of BPPT, says that this does not correlate with the region’s socio-economic development. He adds that the terminal will try to close that gap.
Group managing director of NNPC, Mallam Mele Kyari, says: ‘NNPC is playing the role of facilitating the supply of petroleum products to all sections of this country, more importantly to the region that produce the resources, where refined products are not readily available. This initiative would make sure that we deliver products in the most fair and equitable means.’