Making modular refineries profitable


As Nigerians await the coming on stream of modular refineries, operators and stakeholders in the petroleum sector have emphasized the need for a clear commercial framework, proper logistics, deregulation of the downstream sector and certain government guarantees. They argued that without these, investors will face difficulties in recouping their investments, while the country will not achieve any meaningful benefits from the refineries.
President Muhammadu Buhari had in the wake of his administration granted licenses to investors to build 65 modular refineries in the country. This was after previous licenses issued by past administrations failed to yield any positive results, as only one, Niger Delta Petroleum Development Company, was able to install a modular refinery.
Stakeholders, however, attributed the success of the Niger Delta Petroleum refinery to the fact that it produces only automotive gas oil, AGO, popularly called, diesel, which is not a regulated commodity.
Commenting on the ways to make modular refineries profitable to investors and beneficial to Nigeria, Mr. Chijioke Nwaozuzu, a Professor of Petroleum Engineering, University of Port Harcourt, River State, emphasized the need for government guarantees to investors that it is possible to recoup investments made in private refineries.
He further said the government must guarantee 100 per cent crude oil system for refiners for at least 10 years. Continuing, Nwaozuzu said: “It is a no-brainer that these are capital-intensive projects and most of the risk capital required can only be sourced from abroad. Such huge foreign loans need to be backed with guarantees and I am not certain that the licensees can afford these guarantees. So, government may need to step in to provide guarantees for the foreign loans required by the domestic companies to construct these private refineries.
“Another point is that government has to guarantee 100 per cent refined products off-take by government. The way refineries work is that they work continuously for two years, then the refinery is shut down for routine maintenance and it runs for another two years. Products are constantly being produced on a daily basis and these products have to be evacuated from the storage tanks to the markets.


Check the Vanguard for the full story.
























th







Comments

Post a Comment

Popular posts from this blog

Agric Ministry Introduces New Measures for Fertiliser Allocation

Bauchi State Director in the Federal Ministry of Agriculture, Alhaji Mohammed Yusuf, has described as successful the 2013/14 E-Wallet System of fertiliser allocation and distribution in the country. To this end, he said, the Federal Ministry of Agriculture is soon to introduce the National Agricultural Payment Initiative (NAPI) as a boost to the e-wallet system geared to biometrically capture the data of all farmers under the scheme. He attributed the non-implementation of the e-wallet fertiliser allocation this year to change of administration at the central level, and the non-payment of outstanding payment to agro dealers who supply the fertiliser. The director who spoke in an interview with journalists yesterday in Bauchi, said however that the Federal Ministry of Agriculture is doing everything possible to offset the outstanding arrears to the fertiliser suppliers towards making headway in the programme. “There is also this new programme that is coming up, the National Ag
Read more

10 World Most Eloquent People

Image
Only the eloquent can adequately describe eloquence. It includes articulation, a mellifluous tone of voice and poise under pressure. To be eloquent is to speak well in a persuasive and deeply thoughtful way. Though it appears to come easily, eloquence does not often come naturally. The most talented speakers often have training in rhetoric and behavioral psychology. Here are 10 great examples of eloquent speakers who have made their mark on the world. 1. Martin Luther King, Jr “I Have a Dream” is perhaps the most powerful speech in American history. In poetic, unequivocal language, he explains how people can live up to their ideals for the sake of their children. 2. Abraham Lincoln In a speech only two minutes long, Lincoln explained the moral justification for the Civil War in his Gettysburg Address. 3. Winston Churchill In a few short years Churchill transformed himself from a burly, unemployed, failed novelist to a leader of the free world with
Read more

Over 3,000 mechanics register for Autofest training

Image
Thousands of auto technicians in Lagos have registered for Autofest which started Monday at the Blueroof of the Lagos State Television, Ikeja, western Nigeria. Organizers of the Autofest officially announced the free training while answering questions during a media parley. During the interactive session, Mr Gbola Oba, the COO of Automedics Limited, informed the audience about a partnership arrangement with two prominent mechanic associations in Lagos State to have their members trained in mechatronics and high tech, 21st century technologies in modern automobile. “Members of the Nigeria Automobile Technicians Association of Nigeria (NATA) and Motor Mechanics and technical Association of Nigeria (MOMTAN) have both registered thousands of their members in Lagos for the training,” he said. Check the PM NEWS newspaper for the full story.
Read more