US supports Lagos 20,000 bpd modular refinery project

The country’s desire to stop importations of refined product has received a boost with the signing of grant between the United Stated Government and Eko Petrochem promoter of a 20,000 barrels per day modular refinery on Tomaro Isalnd, Lagos.

The grant is in the region of about $1 million (N360 million)for the project  and would be used for the feasibility study, supporting technologies and development of an implementation plan for the refinery.

According to a statement by the United State Trade and Development Agency (USTDA) Eko Petrochem and Refining Company selected Texas based Vfuel, LLC to carry out the study, which will provide technical analyses and engineering design needed to advance the 20,000 barrels per day modular refinery.

The modular refinery will promote infrastructure development by increasing Nigeria’s local refining capacity.

The project which is expected to be completed between18 to 20 months has been described as a pilot project that may spur other promoters into action so that the country’s dependent on importation of refined products would be significantly reduced in the nearest future.

The USTDA is currently actively supporting  in the financing of eight other projects in the country.

Stuart Symington  US Ambassador to Nigeria, during the official signing of the Memorandum of Understanding (MoU) agreement at the weekend  in Lagos commended the initiative of Eko Petrochem and  Refining Company’s management.

He said that the proposed 20,000 bpd production refinery will attracts more investments to Nigeria.

“ I believes in the project and the investment that it will attract to Nigeria economy”.

He said he felt honoured to be part of the success story and  also promised to support the projects to actualization.

The US Ambassador to Nigeria, commended the chairman of Integrated Oil and Gas,Emmanuel Iheanacho for his commitment to the project. He said Iheaneacho is investing at a time when the country needs it most, while lauding Nigeria government that believes profoundly in the power of the individual citizens and entrepreneurs.

“He is doing it at a time with a government that believes Nigeria can do what can be done anywhere in the world.

According to Emmanuel Ihenacho, chairman, Integrated Oil and Gas, in his remarks during the ceremony he said, by delivering this grant the agency has demonstrated its commitment to the infrastructural development and economic growth of Nigeria, especially in the areas of export.

He said the USA government and its agency have by this  gesture recognise the economic  development  imperative  in the ongoing modular refinery projects and Tomoro industrial park  / Free trade zone  which   have just come into formal existence.

“The grant award is unique in some respect; it is the first of its kind because we have not heard such grant given to anybody. It is the first external money that has come to the project and also for coming from the American government, it provides critical validation for our business efforts practices and direction,” he said

He said the focus of Eko Petrochem is to development a modular and scalable 20,000 per day green field refinery / topping plants, adding that the front end engineering and environmental impact assessment (EIA) has been completed, while the detail of the engineering design would soon be ready

Also speaking, Gordon Paton, Project director Eko Petrochem said the project would maximise local manufacture and encourage  import substitution. While the highest standard of training in the areas of Health , Safety  would be maintained,  just as it would  also recognize  its  social responsibilities on Tomaro Island.

In his remark, Thomas Hardy, USTDA acting director, he said “We are proud to support this new project, which will lead to infrastructure and economic development growth in Nigeria. The project presents an excellent opportunities for the U.S. companies or businesses to export technologies and services in support f Nigeria’s refining goals.”

Souheil  Abbound , managing director  of VFuel  while also commenting said: “VFuel is proud to partner with USTDA   to further develop the Eko Petrochem. We believe very strongly in our commitment to serving the Nigerian people and are enthusiastic that the USTDA shares the same vision and commitment.”

He said Eko Petrochem will be a model for those looking to improve Nigeria’s local refining capacities and will contribute to the growing demand for fuels and electricity.

Olusola Bello