AIPCC Edo Refinery to be commissioned in September
The 6,000 barrel per day capacity Edo Refinery and Petrochemicals, owned by AIPCC Energy Limited, a joint venture between AFCOM and Peiyang Chemical Equipment Company of China (PCC), is billed to be commissioned in September.
The commissioning, however, is subject to approvals by the Department of Petroleum Resources (DPR).
This was disclosed by BusinessDay during a tour around the project at Ologbo, Ikpoba Okha, in Edo state by its reporter.
The company said the private modular refinery project enjoyed the support of the Federal and State governments.
The project, it said, has reached 95 percent mechanical completion and pre-commissioning activities are expected to commence by the end of August.
“This indeed is a remarkable feat for us and Nigeria, it will be the quickest modular refinery delivered In less than one year construction started,” said Michael Osime, chairman of the company in a speech read by a representative.
The Edo Refinery and Petrochemical company was built at the cost of $10.2 million.
It will produce diesel, Naptha and Fuel oil (LPFO).
The Federal Government supported the project by granting duty waivers on refinery equipment and components.
Meanwhile, the state government provided N700 million in debt financing repayable when production commences.
PCC is the EPC partner.
“This was the catalyst to the project to ensure quick take-off and it is a beneficiary of the Edo State government incentive programme to attract manufacturing companies to locate in the state.
“This led to the Nigerian Chinese Joint Venture Company AIPCC Energy Ltd,” Osime said.
According to Osime, following the experience gained in the first phase of the refinery, AIPCC had commenced plans to build a 30,000 bpd refinery as an expansion at the cost of over $64 million dollars.
PCC has agreed to finance 40 percent of the project cost.
Tim Tian, business director at PCC said the refinery is a way Nigeria and China and can strengthen business relationships and even lead to skill transfer as the company was helping students at Auchi Polytechnic improve their technical skills.
Edobor Iyamu, SSA to the president on Niger Delta Affairs, in the office of the Vice President, said he was pleased at the execution.
He called it a poster child for the success of the Federal Government initiative to replace artisanal crude oil refining with modular refineries.
He said similar success has been recorded in other places leading to three modular refineries now almost ready to start producing.
AIPCC has now applied to the NNPC to supply it crude for refinery and has commenced crude supply discussions with marginal field owners.
This, it noted, is because the refinery is designed to use various grades of crude, Osime said.
When completed the Edo Refinery and Petrochemicals aim to supply 20 percent of Nigeria’s diesel and save over $350 million in foreign exchange yearly.
It will also earn over $125 million from export of Naptha and meet Nigeria’s 100 percent LPFO demand.
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