South-East to Get New Refinery, State Governor Gives Completion Date
- Nigeria’s South-East region will soon have another refinery to boost its internally generated revenue
- The 10,000-barrel-per-day facility will be sited in Abia Industrial Park and will generate direct and indirect jobs
- Reports say there are plans to upgrade the facility to a 30,000 bpd capacity refinery to boost its competitiveness
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The South-East is poised to get a new refinery to boost the region’s competitiveness as one of the oil-producing regions in Nigeria.
The new modular refinery, being built in Abia state, will provide about 1,000 direct jobs.
Source: UGC
Abia to get new modular refinery
Abia State governor, Alex Otti, said he is committed to the timely delivery of the proposed 10,000 barrels per day modular refinery.
The refinery, located in the Abia Industrial and Innovation Park in Owazza, is being constructed by HSI Energies Group and will create countless indirect jobs.
Otti said he was committed to the project’s realisation when the management of HSI visited him, led by the group chief executive officer, Ugwumba Nwosu.
The group provided a status update on the activities of the company’s preparation to commence the project.
Abia’s industrial vision
The governor said that the Abia Industrial Park, which is sitting on 2000 hectares of land, can accommodate several industrial firms.
He disclosed that his government has been busy creating a business environment for businesses to flourish in the state.
According to a Punch report, Otti said the industrial park will be powered by gas, including energy logistics, housing, modular refinery, petrochemical plants, fertiliser companies and clean infrastructure.
The governor praised the HSI chief executive officer for his decision to site the refinery in the state, noting that it would contribute to the state’s growth.
Job creation potential
“Thank you for the work that you have done so far, bringing the HSI Energies into Abia state to build a modular refinery.
“Of course, we are not oblivious to the kind of time this takes.
“So, I think you’ve moved very well. Thank you very much. And it is because of the experience that you have,” Otti stated.
The HSI boss said that the project had reached an advanced stage, while equity sourcing and debt financing are ongoing..
According to him, the facility would be developed in phases and will generate direct and indirect jobs, boost the state’s internally generated revenue (IGR) and attract foreign investment.
Ugwumba said that the refinery’s impact would be immense, with training opportunities for Abia indigenes in oil and refinery, and unlocking access to petroleum products.
He also told the government that the refinery is a 10,000-barrel-per-day facility.
Expansion plans
“That’s what the licence is. And for each 10,000 barrels per day, there will be about 1,000 direct jobs created in Abia State. We intend to get to 30,000 barrels per day, he said.
He said the only reason the refinery could not move to 30,000 barrels is due to crude oil, stating that it will create 3,000 jobs when it hits 30,000 barrels per day capacity.
“For each 10,000 barrels of oil per day refinery, the tax that will come to the Government’s internally generated revenue from tax will be about $68 million per annum.
The HSI chief executive praised the state governor for constructing the access road to the refinery, assuring that the facility’s construction would commence in the first quarter of next year.
The new modular refinery will swell the number of refineries in Nigeria, making the country Africa's biggest refining hub.
Source: Facebook
Several refineries, including the mega Dangote Refinery, are already operating in the country, easing the country's dependence on imported refined products.
New 450,000-barrel plant to disrupt Nigeria’s petroleum sector
Legit.ng earlier reported that in a transformative move for Nigeria’s energy industry, Gasoline Associates International Limited (GAIL), led by its chairman and CEO, Lukman Akande Bolaji, has announced the launch of a major refinery project in Ipokia, Ogun State.
The new refinery would begin with a capacity to process 100,000 barrels of crude oil per day, with long-term plans to scale up to 450,000 barrels daily.
Once operational, the refinery would produce critical petroleum products such as Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Liquefied Petroleum Gas (LPG), and Jet Fuel (ATK), while also delivering petrochemical derivatives to both domestic and international markets.
Source: Legit.ng
