Petroleum marketers to commence building $3bn refinery to combat fuel crisis

macfranc007 February 01, 2018 Nigeria News today & Breaking news ▷ Read Nigerian newspapers 24/7 Nurudeen Lawal

- Petroleum marketers association has advised the federal government to invest more in modular refineries as a way to end fuel scarcity

- The association said it is set to start work on its refinery project

- The refineries are planned to be located in Kogi and Bayelsa states

The Independent Petroleum Marketers Association of Nigeria (IPMAN) is set to commence work on its proposed $3 billion (N1.08 trillion) refinery in two states of the federation.

The national president of the association, Chinedu Okoronkwo, made the disclosure in an interview with the News Agency of Nigeria (NAN) in Lagos on Wednesday, January 31.

IPMAN had in July 2014, acquired over 1,000 hectares of land to build refineries that would produce 200,000 barrels of petrol per day at Itobe in Kogi and Abbe in Bayelsa.

Okoronkwo said the project which ought to have started two years ago was delayed, due to leadership tussle in the association, adding that the project would commence now that the leadership issues had been resolved.

The IPMAN boss said that the leadership of the association had commenced discussion with investors and technical partners on how the project could commence forthwith, noting that the association remained committed to the project.

He said: “Our N3 billion dollars refinery project would soon commence as we are discussing with our investors and technical partners.

“We are pursuing it very strongly because we believe in the success of the refinery. We bought 1,000 hectares of land in Kogi and Bayelsa, the states have been given approvals.

“Once government approvals and consent have been given, we are ready to move to the site and commence production.”

Okoronkwo said that foreign investors had conducted feasibility studies on the project in order to commence full operation.

He said that IPMAN’s aim was to contribute its quota as a stakeholder in the project to reduce the level of capital flight by foreign investors that characterised the oil and gas sector.

“The cost of exporting crude oil and bringing back refined products will be reduced.

“We want government to give us the necessary licences and ensure an enabling environment to operate,’’ he said.

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Okoronkwo urged the federal government to invest more in modular refineries as a way to end fuel scarcity.

He said that the modular refineries could help to address shortfalls in fuel supply, pending when additional refineries would be built.

NAIJ.com previously reported that Ibe Kachikwu, minister of state for petroleum resources, said petroleum marketers will meet at the Nigerian National Petroleum Corporation (NNPC) headquarters to consider the possibility of calling on private marketers for the importation of petroleum products.

NNPC at present imports 100% of petroleum products into the country which was different from a previous arrangement of 60-40% government, private sector participation.

Kachukwu stated that the president had ordered for an ad-hoc committee that would engage the federal government on the best way to bring back oil marketers to import petroleum products so as to make sure there is adequate supply across the country.

Fuel scarcity: This is getting too much for us - Nigerians lament - on NAIJ.com TV