Page 16 - DMEA Week 48 2020

DMEA REFINING DMEA

Buhari says state must ensure crude

supplies to independent refineries

NIGERIA NIGERIAN President Muhammadu Buhari has with UNIDO, according to Nigerian press
expressed strong support for independent oil reports.
Nigerian President refineries by ordering government agencies and Waltersmith said last week that it hoped
Muhammadu Buhari state-controlled companies to ensure deliveries to bring other companies working along the
has expressed strong of feedstock to such plants. hydrocarbon value chain – manufacturers of
support for independent Last week, the president said he had petrochemicals, plastics and pharmaceuticals,
oil refineries by ordering instructed the Department of Petroleum as well as research organisations and light man-
government agencies Resources (DPR) and state-owned Nigerian ufacturing enterprises – to the park. In order to
and state-controlled National Petroleum Corp. (NNPC) to ensure attract such tenants, it will offer to provide part-
companies to ensure deliveries of crude to the modular oil-process- ners with direct access to valuable raw materi-
deliveries of feedstock ing plant built by Waltersmith Petroman Oil at als from the refinery. Additionally, it will invest
to such plants. the Ibigwe oilfield in Imo State. He also tasked heavily in infrastructure so that it can provide
DPR and NNPC with making certain that the reliable electricity supplies and utility services.
new refinery and other privately owned facilities Abdularazaq Isah, the chairman of Walter-
like it had enough crude oil and gas condensate smith, said at a ceremony marking the sign-
to operate optimally. ing of the TSA that the project would help fuel
Buhari stated that his government was economic growth in south-eastern Nigeria. He
backing modular refinery projects within the stated: “Our goal is to create an industrial clus-
framework of a wider effort to reduce Nigeria’s ter in Ibigwe and help reduce manufacturing
dependence on imported petroleum products. costs, position the south-eastern region as a
Additionally, he noted that the construction of major manufacturing hub and take advantage of
the Ibigwe plant had created thousands of jobs, the African Continental Free Trade Agreement
both directly and indirectly, and said he hoped [ACFTA], which the Nigerian government has
the project would continue to promote eco- currently signed [up to].”
nomic growth in the region. Waltersmith recently commissioned the
first phase of the refinery. This unit can process
Energy hub 5,000 barrels per day (bpd) of crude oil and store
He was speaking several days before Walter- up to 60,000 barrels, and it will produce diesel
smith announced that it had signed a Technical fuel, kerosene, naphtha and residual fuel oil for
Support Agreement (TSA) with the UN Indus- domestic consumption. The company hopes
trial Development Organisation (UNIDO) eventually to raise the plant’s throughput capac-
and the UN Economic Commission for Africa ity to 50,000 bpd by building two more units, one
(UNECA) on the establishment of an energy that can process 25,000 bpd and another that can
innovation park near the refinery. The deal handle 20,000 bpd. The new facilities will be able
builds on the company’s ongoing partnership to produce gasoline, aviation fuel and LPG. ™

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