Why Ologbo Refinery Is Important Now To Nigeria’s Economy

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CBN

Edo Modular Refinery to earn $125m per annum from Naptha export

Olusola Bello

When the Ologobo Refinery comes on stream it would help to reduce the dependence on imported fuel in the country. Even though it may not be producing Premium Motor spirit or Petrol immediately, it would be producing other components of petroleum products such as Automotive Gas Oil (AGO), Diesel, Naphtha, and Fuel Oil.

It will at least serve its locality including the surrounding states, but it is yet to solve the problem of petrol in the country, as no one knows how soon it would take for it to start the production of petrol. It would however compliment other modular refineries that have come on stream, and also help to increase employment level no matter how insignificant.

The refinery was developed by two Chinese firms: AIPCC Energy Limited and Peiyang Chemical Equipment Company Limited.

It has a capacity of 6,000 barrels per day and it is expected to produce 50 percent of diesel (500,000 litres), 25 percent of naphtha (300,000 litres) and 20 percent of fuel oil (200,000 litres) from its feedstock.

Tim Tian, managing director of the project, had said the refinery will get its feedstock (crude) from the Nigerian Petroleum Development Company (NPDC) facility – oil mining lease (OML) 111 – near Benin City.

“We were in China to sign this Memorandum of Understanding (MoU). I am very impressed that work has moved at such a speed in spite of the delay caused by COVID-19 pandemic,” Godwin Obaseki, governor of Edo state said during a recent visit to the facility.

“The plant is ready to receive crude oil; it is ready to process and it is ready to deliver products. They have done the pre-commission with the Department of Petroleum Resources, they have certified the refinery.

“What we have left now is to finalise the crude oil sale contract, these facilities have to get a certain type of crude from the escravos line and that is being finalised.

https://ads.thecable.ng/ads/www/delivery/lg.php?bannerid=13&campaignid=7&zoneid=16&loc=https%3A%2F%2Fwww.thecable.ng%2F6000bpd-edo-modular-refinery-ready-for-production-says-obaseki&referer=https%3A%2F%2Fwww.google.com%2F&cb=71f77b5b0f“I hope that before the end of August, we should start lifting products from this refinery.”

        President Muhammadu Buhari had said construction of modular refineries in Nigeria will make               pe    petroleum products available in the country as well as eliminate importation.

 

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