A Nigerian exploration and production(E&P) company, Gasoline Associates International Ltd, and its partners including Taiwan-based Engineering Procurement and Construction (EPC) firm, FL Engineering Inc., and Trafalgar Energy Solutions Limited, have revealed the plan to deliver a 400,000 barrels per day(bpd) refinery valued at $3 billion in Tongeji Island, Ipokia Local Government Area of Ogun state in the next 36 months.
The refinery, when completed is expected to process 100,000 Barrels Per Day (BPD) of crude oil to produce 25,196bpd Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), 52,381 pbd, Liquefied Petroleum Gas (LPG), Fuel Oil, Aviation Kero and various petrochemicals for domestic & foreign consumption or further processing, with the plan to expand refining capacity to 400,000 bpd in the next few years.
Dr. Lukman disclosed that the project would sit on 800 hectares of land that had already been acquired for development.
He said, “We are bringing in a capital inflow of N3 billion into the state. We would have been on site by now but for the COVID-19 pandemic. With this project, Ogun State will have security and guarantee of petroleum products at all times because we intend to serve our immediate environment before taking it outside,” Bolaji noted.
The investor further hinted at the plan by his company to generate 110 Megawatts (MW). of electricity, with an initial target of 37 MW.
He also noted that the facility would create 10,000 direct and indirect employment and also boost the internally generated revenue for Ogu state which is already an oil-producing state.
He hinted that the refinery facility is expected to be developed in partnership with a Taiwan-based company including Shanghai Yizhen Chemical Engineering Co. Ltd., CCECC Nigeria Limited, Luoyang Ruiming Petrochemical Technology Co. Ltd. Engineering design, and other Chinese companies that would be supplying the technology needed for the development of the project in the next 36 months.
The Chairman noted that Trafalgar Energy Holdings, a United States company also based in Nigeria through Trafalgar energy solutions limited, is also a partner in the project.
Oba Saka Matemilola, Olowu of Owu, who was part of the team, said the company was in the state to prospect oil and build a refinery for petroleum products, saying the project would help the state to be an oil-producing one in the nearest future.
Governor Abiodun in his remark said that Ogun and Lagos states consume about 70 percent of petroleum products in Nigeria, saying the project was coming after the state lost a similar project to a neighbouring state.
He said his administration had created investment hubs across the zones to promote business activities, while agencies have also been created for seamless relationships between the State government and investors to promote ease of doing business in the state.
Governor Abiodun also disclosed that the project aligned with the Public Private Partnership policy of his administration to promote individual prosperity.
Abiodun further described Ogun West as an important zone that had contributed largely to the state being an industrial hub of the country, adding that his government was determined to promote industrialisation of the area by paying attention to it in line with its economic agenda.
“project like this is not a walk in the park and has therefore commissioned a team to liaise with the company for advanced strategic collaboration to speed up the delivery of the project.