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Buhari to commission phase 1 of brand new refinery this week

President Buhari is set to commission the first phase of a new petroleum refinery located in Imo State.

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Buhari to commission phase 1 of brand new refinery this week, Petroleum Industry Bill, revenue, FSDH, Buhari to release N600 billion for capital expenditure in 3 months, Nigeria @ 59: President Muhammadu Buhari’s speech, Buhari’s Budget of Sustaining Growth & Job Creation (Full text) , See what FSDH is saying about the 2020 budget and FG’s revenue drive , Nigeria recoups N594.09 billion from whistleblowing policy in less than 3 years , Buhari seeks speedy approval of the 2016/2018 external borrowing plan , Finance Bill to use banks as agents to tax Nigerians , FG battles 6 oil firms for failure to remit N20 trillion , President Buhari receives 2020 budget, fear of padding to delay assent , Nigeria’s Budget Spending Under Buhari Still Under 2013 Levels 

President Muhammadu Buhari is expected to commission the first phase of a brand new petroleum refinery, which is located at Ibigwe, Imo State and owned by oil and gas integrated firm, Waltersmith Limited, this week.

The Federal Government holds a stake in the refinery, following an investment by the Nigerian Content Development and Monitoring Board (NCDMB).

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This disclosure was made by the presidency through a tweet post on his official Twitter handle on Sunday, November 21, 2020.

The presidency in its tweet post said, “This week President Muhammadu Buhari will commission the first phase of a brand new petroleum refinery by WalterSmith Limited, located at Ibigwe in Imo State. The Nigerian Government holds a stake in the refinery, following an investment by NCDMB.”

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READ: Irate Nigerians drag Imo State Governor for snubbing Innoson Vehicles

The phase 1 of the project is the delivery of 5,000 barrels per day (BPD) Modular capacity refinery that is strategically located near the existing flow station and will process the circa 6,000 barrels of oil equivalent per day (boepd) currently produced by the upstream business to the readily available market in the south-eastern part of Nigeria.

This is expected to contribute about 271 million litres of refined products including Diesel, Naptha, HFO and Kerosene annually to the domestic market and create both direct and indirect jobs particularly within the host communities.

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The second phase is the delivery of 25,000 BPD crude and condensates refinery; an upgrade on the 5,000bpd modular refinery.

The project is still at an early stage of development but is designed to produce the following products: gasoline, diesel, LPG, kerosene and aviation fuel.

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This is a huge boost to the Federal Government’s efforts to increase the country’s refining capacity of petroleum products and stop its importation.

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Apart from the 650,000 barrels per day Dangote refinery that is expected to come on stream, there are several other modular refineries that are expected to take off.

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

3 Comments

3 Comments

  1. JIBRIL OSARIEMEH SHUAIBU

    November 24, 2020 at 12:49 am

    JIBRIL OSARIEMEH SHUAIBU.
    WELL-DONE JOB.
    PLS I WANT TO BE GETTING UPDATE ABOUT BUHARI ACHIEVEMENT.
    MY WHATSAPP NUMBER 08034873832.

  2. Tunji Arojojoye

    November 24, 2020 at 7:44 am

    Why can’t Buhari commissioner something on electricity, roads and water? The are the urgent needs of ordinary people. The generators are poisoning an killing people. People need lights more than refineries. Refineries are for rich politicians who have card. Why o why for God’s sake, people are crying for help. What is really about generators that the politicians are so scared that they don’t want to talk about it? All it needs is a stroke of the pen. In some parts of the country, people have been without electricity for year, months, weeks. The rich and the poor are the same human beings created by God. Why cater for the rich only.

  3. Paul

    November 24, 2020 at 8:12 am

    This is goof gradually we will be there.

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Energy

TCN restores collapsed electricity grid

TCN has now restored the electricity grid system which collapsed across the country over the past weekend.

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TCN MD Abdulaziz, four other directors receive appointment letters

The Transmission Company of Nigeria (TCN) has restored the collapsed electricity grid system across the country.

This was disclosed by the Acting Managing Director of TCN, Mr Sule Abdulaziz, during a media briefing on Wednesday.

According to the TCN boss, the system which collapsed on Sunday evening was restored within 40 minutes of the incident.

He said, “The company immediately went into action and stabilised the system in Abuja, before other parts of the country. There is nothing strange but it is normal for a system to collapse and that can happen in any country of the world.

“Since I came on board, we never had any system collapse and this one that happened on Sunday was restored immediately which is the fastest system collapse recovery. We are guarding the grid, we don’t want the system collapse to happen, but when it happens, the most important thing is what was done and how it was done to restore the system.”

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What you need to know

Three days ago, Nairametrics reported that the recent power blackout in the country was due to multiple trippings.

General Manager, Public Affairs, TCN, Ndidi Mbah, who made the announcement through a statement said the company had started the process of restoration to the national grid.

Mbah pointed out that the places that power is yet to be restored were Calabar, Makurdi, Jos, Gombe, Yola, Ugwuaji and Maiduguri axis.

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She stated, “The Transmission Company of Nigeria (TCN) regrets to inform electricity consumers nationwide that at 11:25 am today, the nation’s electricity grid experienced multiple trippings, which led to the collapse of the system.’

“TCN has since commenced grid restoration; power has been successfully restored to every part of the country, except Calabar, Ugwuaji, Markurdi, Jos, Gombe, Yola, and Maiduguri axes. The effort is however ongoing to ensure full restoration nationwide.”

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Energy

N250bn to be spent to fund compressed Natural Gas infrastructure

The CBN is to make available the sum of N250 billion to fund Compressed Natural Gas infrastructure.

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The Central Bank of Nigeria (CBN) is poised to make available the sum of N250 billion to fund Compressed Natural Gas infrastructure.

This move is in a bid to expand gas use and cut reliance on imported fuel, as the government looks forward to offering free conversion to enable some cars run on gas.

It is expected that by 2021, about 1 million cars would have been converted from PMS to Autogas for free.

The National Gas Expansion Programme (NGEP) launched by President Muhammadu Buhari, is part of the country’s effort to free itself of costly gasoline subsidies and conserve the hard-earned foreign reserves from petroleum product imports, making it imperative to focus on gas as an alternative fuel.

(READ MORE: Nigeria to import petroleum products from Niger Republic, sign MoU on transportation, storage)

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What they are saying

According to the Group Managing Director (GMD) of Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari,

“Select NNPC stations across the country will offer free conversion of ‘some cars’ to enable them to run on liquefied petroleum gas (LPG) or compressed natural gas (CNG). There are currently 80 locations in the country capable of fuelling the vehicles.”

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Bottom line

This is a welcome development as it is cleaner, safer, and affordable to run the cars on gas.

It would also, to a large extent, conserve the foreign reserves being depleted from huge petroleum product imports, as well as offer millions of job opportunities.

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Energy

FG says vehicle owners to pay N250,000 to convert from petrol to autogas

FG says owners in the country will have to pay N250,000 to have their cars converted to autogas from petrol.

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FG says vehicle owners to pay N250,000 to convert from petrol to autogas

The Federal Government has revealed that vehicle owners in the country will have to pay N250,000 to have their cars converted to autogas from petrol.

This disclosure was made on Wednesday, December 2, 2020, by the Technical Adviser on Gas Business and Policy Implementation to Minister of State for Petroleum, Justice Derefaka, while on Channels Television’s Sunrise Daily, which was monitored by Nairametrics.

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While stating that the conversion of vehicles from petrol to autogas will take at least 7 hours at the various conversion centres, Derefaka also pointed out that vehicle owners will have different payment plans to perform the conversion.

What they are saying

Derefaka, who is also the Programme Manager, Nigerian Gas Flare Commercialization Project, said:

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The cost varies. So, in terms of cost implication, it depends on the cylinder of the vehicle and of course, for a typical SUV cylinder, it is a bit higher. On the average, it is around N200,000 to N250,000 and this is for a four-cylinder vehicle, but it becomes a little bit higher for a six-cylinder SUV vehicle.”

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Nairametrics earlier reported that the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari, disclosed that the corporation is going to provide free conversion services in some selected NNPC retail filling stations across the country.

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Derefaka further explained that there will be different payment plans for making the conversion, adding that vehicle owners can have agreement with commercial banks to get the conversion done.

READ: FG to make forex available to oil marketers for import to drive down petrol price

He also said, “The owner of the car basically will decide to say I want to run on autogas or CNG or LNG and like the Honourable Minister had mentioned as well, conversion basically has different strands, you can partner with your bank and then the bank will now agree with the conversion centre to say ‘Convert this our customer’s car for free.’

“Not free in its entirety, but you now go and covert your vehicle. What happens is that the installer will put some form of mechanism, that each time you buy the gas; a certain amount will be deducted to pay for the conversion kits.”

While dismissing the notion amongst many Nigerians that the conversion fee is expensive, the ministerial aide noted that payment can be done within 5 to 7 months, in addition to saving up 45-50% cost associated with petrol.

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What you should know

  • The Federal Government had on Tuesday launched the autogas scheme, called the National Gas Expansion Programme.
  • The programme involves the conversion of fuel-powered cars and generators from petrol to gas, and is aimed at deepening domestic usage of natural gas in its various forms.
  • The programme is also in line with the Federal Government’s plan to make gas the first choice source of cheaper and cleaner energy. This follows the deregulation of the downstream sector of the oil industry with sharp increases in prices of petrol.
  • The Minister of State for Petroleum Resources said that the availability of Autogas as an alternative fuel option will afford Nigerians cheaper, cleaner and additional choice of fuel. Cheaper than the price of petrol and better for automobile and other engines.

READ: Hyundai to invest $87 billion into producing 44 new electric vehicles 

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