$6 billion BP lifeline for Brass Fertilizer and Petrochemical Company Limited

BP oil international in a landmark deal has agreed a product offtake guarantee worth $6 billion with Brass Fertiliser & Petrochemical Company Limited (BFPC). Through the contract, BP has locked in an exclusive offtake of methanol production from the facility on completion over a period of 10 years. The deal will see BP lifting 100% annual output from phase 1 of the project which has been estimated at 1.66 million Metric Tonnes (MT) of Methanol and 1.3 million MT of Urea. The first phase is scheduled for completion by 2020. By concluding the deal, Brass Fertiliser & Petrochemical Company Limited has achieved the major condition precedent for accessing the desired project finance from institutional investors and lenders.