By Ediri Ejoh
The Federal Government is projecting an average of 250,000 barrels per day petroleum product refining capacity through the establishment of modular refineries.
A modular refinery is a simplified refinery requiring significantly less capital investment than traditional full-scale refinery facilities. The Minister of State for Petroleum Resources, Timipre Sylva, who made this known at the inauguration of the 5,000 barrels-per-day Waltersmith Modular Refinery and the groundbreaking for a 45,000-bpd plant in Imo State, expressed its support to modular refiners in a bid to meet government’s target of becoming a net importer of petroleum products. He stated: “The country is targeting 250,000 barrels per day refining through the Modular Refinery roadmap.
“In ensuring this, the government has taken bold steps in stabilising the downstream oil sector with removal of petroleum subsidy and transition to deregulation of the sector. The idea is to free the market for private sector participation and drive competition with better products and better customer services.”
Speaking also, President Muhammadu Buhari, added: “Government was willing to provide necessary support to modular refiners as well as Waltersmith refinery in a bid to grow the nations’ economy.”
He stated that the establishment of modular refineries was one of the four key elements of his administration’s refinery roadmap rolled out in 2018.
According to him, implementation of the initiative would make Nigeria a net exporter of petroleum products.
Earlier, the Chairman, Waltersmith Group, Mr Abdulrazaq Isa, said the refinery would deliver over 2.7 million litres of refined petroleum products yearly, including kerosene, diesel, naphtha and heavy fuel oils, to the domestic market.
He said, “The facility been commissioned has been designed to produce 271million litres of products annually. These products include AGO (Diesel), DPK (Kerosene), HFO (Heavy Fuel Oil) and Naphtha. The evacuation of these products in top quality and standards had commenced on November 3rd, 2020, following statutory approvals granted by the DPR.”
Vanguard News Nigeria