The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has disclosed that two modular refineries are set to be commissioned in Nigeria by December 2018, one in Delta State and the other in Rivers State. Represented by a director in the Ministry of Petroleum Resources, Dr. Kachikwu stated that the Federal Government is very much interested in constructing modular refineries, and further explained that:
“Their development would help to address the perennial shortage of domestic supply of petroleum products, create jobs and stop illegal refining of crude oil and the attendant deleterious impact on the environment.”
The Federal Government has in the past taken steps to promote the modular refinery project with the issuance of guidelines for the establishment of modular refineries and borrowing some US$500 million from the Export-Import Bank of China (CHEXIM) with a stated aim to export about 300,000 barrels per day of refined petroleum product by 2019.
Dr. Kachikwu also added that the Federal Government has issued licences for 38 modular refineries all currently at different stages of completion, and that the Federal Government is committed to ending flaring by utilizing and monetizing the country’s abundant gas resources.
He added that:
“If we succeed in stopping the importation of refined petroleum products, something I’m very committed to, we will be saving 30 to 40 percent of the foreign exchange in this country.”