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FG slashes import duty on modular refinery equipment

Kachikwu reveals why refineries are yet to be revamped

In order to encourage investment in modular refinery in the country, the Federal Government has given approval for the reduction of import duty rates on modular refinery equipment and components.

The Federal Ministry of Petroleum Resources revealed this in a document, explaining that this is the reason behind recent works being done in modular refineries in the country.

“The ministry has secured approval for incentives on reduced import duty rates (customs duty waiver for the importation of modular refinery machinery, equipment and components) to encourage investment in modular refineries,” the FMPR stated.

It would be recalled that the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, had in November last year, stated that the government was working hard to ensure that modular refineries started operating effectively in Nigeria.

According to Kachikwu, three out of the about 40 planned modular refineries would come on stream by the end of 2019, adding that 10 investors in modular refineries had submitted their various programmes and were making tangible efforts.

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“Out of the 40 licences issued, 10 have shown progress by submitting their programmes and putting something on the ground. By the end of 2019, we are assured that three private modular refineries would come on stream,” Kachikwu said.

The FMPR, in its document, however, stated that 10 modular refinery projects had been identified for possible groundbreaking, with two among them, OPAC refinery at Kwale, Delta State, and Niger Delta Petroleum Resources Refinery at Ogbelle, Rivers State, already in advanced stages.

It stated that the groundbreaking ceremony of the Waltersmith 5,000 barrels per day modular refinery at Ibigwe, Imo State, took place on October 4, 2018, adding that the timeline for its inauguration was 18 months.

Speaking also on the the establishment of Greenfield and collocated refineries to boost petroleum product sufficiency, the ministry stated that the Dangote 650,000bpd refinery was expected to come on stream by 2020, as construction was ongoing.

It stated that the Nigerian National Petroleum Corporation was negotiating for the provision of land space and power supply with the JIL-Amber Consortium for the collocation of a 100,000bpd refinery in the Port Harcourt Refining Company yard.

The petroleum ministry further noted that the Memorandum of Undertaking between Nigeria and Niger for the construction of a pipeline from Niger to Nigeria and the establishment of a 60,000 to 100,000bpd refinery at a border town in Nigeria had been signed and the steering and technical committees were already inaugurated.

“Agip is working towards establishing a 150,000bpd capacity refinery and feasibility studies are ongoing,” the ministry added.

The ministry also explained that all the projects highlighted are targeted at improving local refining capacity and job creation.

Ripples Nigeria

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Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com