Ondo, firm sign pact to build $500m modular refinery
To produce 30,000 bpd in 36 months
Ondo State government yesterday signed a Memorandum of Understanding (MoU) of $500 million with a firm, Crown Refinery and Petrochemical Limited, to start a modular refinery in the riverine area of the state.
Chief Executive Officer and Chairman of Liquid Waste Energy Limited, Mr. Kareem Adeleke, who led other partners like a German company, Siemens, said the company would produce 30,000 barrels per day. He hinged the project on the noticeable vacuum in supply of petroleum products in Nigeria and the West African markets, saying the company is set to meet up the increasing demand.
“This has been largely unmet by the existing supply from refineries in the region. Nigeria has four major refineries. “However, the West African sub-region still imports most of her petroleum products. This is the gap that Crown Refinery & Petrochemical Limited is set up to fill,” he said.
According to him, the core mandate is refining crude oil into premium petroleum products, manufacturing lubricants and specialised packaging for products to meet the needs of their valued clients.Besides, Adeleke disclosed that there would be site inspection today to Ilaje Local Council where the state government ceded over 170,000 hectares of land for the refinery to be completed in 36 months.
He said the Siemens partner would generate 40,000 megawatts for the company, which would also create 2,000 direct and indirect labour for the people, aside other fringe benefits for host-communities. The state governor, Mr. Oluwarotimi Akeredolu, assured the nine-member board for the modular refinery that the government would provide the enabling environment and incentives to support the actualisation of the project.
Akeredolu, who reiterated that his administration was determined to make the state friendly for investments and business transaction through the Ondo State Development and Investment Promotion Agency (ONDIPA), hinged the determination on numerous efforts to develop infrastructure and ease transportation problems in the state.“We want to have a road that will easily link Ondo to Lagos State within a 40-minute drive. This is the project we believe that is not only for your benefit, which you will make money, it is for the benefit of our people and the state at large.”
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