The Federal Government has sought the support of the United States (U.S.) for the deployment of modular refining technology to boost energy security in Nigeria.
The request for assistance follows the visit of the Minister of State for Science and Technology, Henry Ikoh, to the U.S. Consulate Commercial Department, in Lagos.
In view of current fuel shortages, Ikoh stressed the need for immediate deployment of modular refineries in the nine Niger Delta states, starting with those that have the most conducive environment with reference to security and business interests.
He also said such investments will be strictly private sector driven, and would be facilitated by the Rock Results Group and demonstrated at pilot scale in different locations.
Modular refineries are small scale refineries that can process up to 30,000 barrels per day of crude, which are being built as part of plans to curb oil theft and promote peace in the country’s main oil-producing region. They require significantly less capital investment than the traditional full-scale refineries.
Ikoh argued that modular refineries will not only improve Nigeria’s economic outlook and enhance the welfare of the Niger Delta people, but also create jobs for local artisans.
Furthermore, it will help to curb the operation of artisanal crude refineries, reduce health hazards and protect Nigeria’s environment.
The Minister said the Federal Government is wholly committed to supporting the immediate deployment of modular refinery systems to reduce the challenges associated with artisanal refining and open new business relationships with American investors.
According to him, the initiative is designed to allow for both technology transfer and immediate business take-off, adding that early realisation given the current energy need is high as well as the political will.
Modular refineries will not only improve Nigeria’s economic outlook and enhance the welfare of the Niger Delta people, but also create jobs for local artisans and curb the operation of artisanal crude refineries, reduce health hazards and protect Nigeria’s environment.
Responding, Senior Commercial Specialist of the US Consulate Commercial Department, Ms Ngozi B. Nkwo, assured the Minister of the U.S. Mission’s support, and promised to match the Nigerian Government’s speed on the project, to enhance business growth, human and environmental protection.
On his part, Commercial Specialist at U.S. Consulate Commercial Department, Chamberlain Eke, noted that although funding remains a challenge for such initiatives, especially with reference to the commercial scale envisaged, however, the enthusiasm of the current administration will boost sourcing for funds.
Against this backdrop, the Consulate said the EXIM Bank of USA will support the investment as long as the Nigerian business counterparts can raise the required 15% equity, in line with the financing policy of the bank.
The US Consulate also promised to contact American companies in the modular refinery sector and set up necessary meetings for the project take off.
They further expressed delight in the opportunities that the modular refinery project will bring to American companies that have already expressed strong interests in the sector and the Nigerian economy.
