The 6,000 barrel per day capacity Edo Refinery and Petrochemicals, a private modular refinery project that enjoyed the support of the Federal and State government, is billed for commissioning next month pending approvals by the regulator.
During a tour around the project at Ologbo, Ikpoba Okha, in Edo state by this reporter, the company said the project has reached 95 percent mechanical completion and pre-commissioning activities are expected to commence by the end of August.
“This indeed is a remarkable feat for us and Nigeria, it will be the quickest modular refinery delivered In less than one year construction started,” said Michael Osime, chairman of the company in a speech read by a representative.
The Edo Refinery and Petrochemical company is owned by AIPCC Energy Limited, a joint venture between AFCOM and Peiyang Chemical Equipment Company of China (PCC) and was built at the cost of $10.2million. It produces diesel, Naptha and Fuel oil (LPFO).
The Federal Government supported the project by granting duty waivers on refinery equipment and components while the state government provided N700m in debt financing repayable when production commences. PCC is the EPC partner.
“This was the catalyst to the project to ensure quick take-off and it is a beneficiary of the Edo State government incentive programme to attract manufacturing companies to locate in the state. This led to the Nigerian Chinese Joint Venture Company AIPCC Energy Ltd,” Osime said.
According to Osime, following the experience gained in the first phase of the refinery, AIPCC had commenced plans to build a 30,000 bpd refinery as an expansion at the cost of over $64million dollars. PCC has agreed to finance 40 percent of the project cost.
Tim Tian, business director at PCC said the refinery is a way Nigeria and China and can strengthen business relationships and even lead to skill transfer as the company was helping students at Auchi Polytechnic improve their technical skills.
Edobor Iyamu, SSA to the president on Niger Delta Affairs, in the office of the Vice President, said he was pleased at the execution and called a poster child for the success of the Federal Government initiative to replace artisanal crude oil refining with modular refineries. He said similar success has been recorded in other places leading to three modular refineries now almost ready to start producing.
AIPCC has now applied to the NNPC to supply it crude for refinery and has commenced crude supply discussions with marginal field owners as the refinery is designed to use various grades of crude, Osime said.
When completed the Edo Refinery and Petrochemicals aim to supply 20 percent of Nigeria’s diesel, save over $350m in foreign exchange yearly, earn over $125m from export of Naptha and meet Nigeria’s 100 percent LPFO demand.
Source: Business Day