The Edo Modular Refinery operated by Edo Refinery and Petrochemical Company Limited is expected to meet 100 per cent of Nigeria’s Low Pour Fuel Oil need with support from the State government.
The first phase of the facility, capped at 6000bpd, is on the verge of completion in Ologbo, Ikpoba Okha Local Government Area of the state.
This is according to a statement by the Special Adviser, Media to the Edo State Government, Crusoe Osagie.
The statement titled ‘Obaseki’s reforms: Edo Modular Refinery to meet 100% of black oil demand, boost industrialization’ was dated September 7.
The Chairman of ERPC, Michael Osime, was quoted in the statement to have said that when the company must have met the local demand for the production of Low Pour Fuel Oil (LPFO), the Central Bank of Nigeria would have to remove the product from its foreign exchange list.
The LPFO is a fundamental input in steam generation in many labour-intensive industries such as textiles, construction, food and beverages. It drives industrial growth.
The Edo Modular Refinery being developed by Edo Refinery and Petrochemical Company Limited (ERPC) with support from the Edo State Government
He also disclosed that the refinery is set to earn about $125m foreign exchange from the exportation of Naphtha, which is one of the major products from the facility.
According to him, the refinery benefits from the Federal Government’s ease of doing business programme through which it granted fiscal incentives such as duty waiver on importation of equipment.
Osime was quoted to have said, “The modular refinery has achieved 95 per cent mechanical completion. The pre-commissioning activities are expected to commence soon.
“Our expansion programme to 30,000BPD will save in excess of $350m in foreign exchange per annum.
“The facility will also meet 100 per cent of the demand for LPFO per annum. Therefore, with our production capacity, the CBN can remove LPFO from the foreign exchange list.”
Osime appreciated the State and Federal Governments for creating a good business environment that led to the speedy realisation of the project.
He noted that the company secured its licence to establish a refinery (LTE) on December 10, 2018, and approval to construct (ATC) on March 11, 2019, from the Department of Petroleum Resources (DPR), noting that DPR has been extremely helpful in guiding the process of the establishment of the facility.