Edo Refinery and Petrochemicals Limited, being developed by AIPCC Energy Limited at Ologbo, Ikpoba Okha Local Government Area of Edo State, will start operation in October this year, it was learnt.
The 6,000 barrels per day (bpd) capability modular refinery, in line with AIPCC administration, is being developed with the assist of Edo State authorities.
Its Technical Director, Mr. Tim Tian, stated the fabrication of the refinery has been accomplished in China and is awaiting inspection and approval by the Department of Petroleum Resources (DPR) earlier than will probably be shipped to website in Nigeria.
According to Tian, on arrival, ultimate touches will probably be made to the fabrication and set up will observe, after which the refinery will start operation.
He stated the area people additionally has a taking part curiosity in the venture, including that the corporate may even construct mini LNG plant there and can seize some flared fuel, which will probably be processed into LNG and be used as gasoline to energy the facility plant that will probably be used to function the refinery.
He stated the refinery will get its feedstock (crude) from the Nigerian Petroleum Development Company’s (NPDC) facility – oil mining lease (OML) 111, situated in Oredo, Ologbo close to Benin.
nomic aspect, PMS isn’t worthwhile as a result of it’s extremely regulated. To course of PMS we have to course of naphta to octane quantity to 92 which is Nigeria’s specification as a substitute of 65.
“Feature for modular refinery are small capacity and simple process. Modular refinery is good for Nigeria. Modular refinery is of advantage to Nigeria because its crude is light and sweet. By simple process, you can have good quality products from the crude that can be used in the local market directly. In China it is quite different because we are short of crude oil and the crude we have is small and sour. Therefore the cost of refining in China is higher than in Nigeria.”
He stated the refinery when operational will produce from its feedstock 50 per cent of diesel (500,000 litres), 25 per cent of naphta (300,000 litres and 20 per cent of gasoline oil (200,000) litres. According to him, the refinery is not going to be producing PMS presently as a result of authorities regulates its worth and it’ll not be economically viable to enter its refining.
Tian acknowledged that it’s due to regulation of worth of PMS (petrol) that these licensed by the DPR in the previous to arrange personal refineries couldn’t construct. They (licensees) reasonably would select to commerce the crude than refine it in-country as a result of authorities subsidizes PMS. Diesel might be refined in Nigeria as a result of the worth is deregulated.
AIPCC Energy Limited is a subsidiary of African Infrastructure Partners (AIP), a enterprise group with pursuits in oil and fuel, energy, monetary companies, agriculture and expertise