Preliminary Design For Kogi Greenfield Refinery Begins - NNPC

LOKOJA, July 09, (THEWILL) - Enthusiasm ran through the people of Kogi State on Thursday as the Nigerian National Petroleum Corporation led a team of Chinese investors and engineers from the China State Engineering Construction Corporation to appraise the physical environment of the proposed location of the Kogi State Refinery and kick start preliminary project design activities.

The state was recently selected as one of the sites for the proposed three Green field Refineries being planned by the NNPC in alliance with the CSECC.

Providing a graphic picture of the project during a visit to the Kogi State Governor, Dr. Ibrahim Idris in Lokoja, the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Engr. Austen Oniwon stated that upon completion, the proposed Greenfield Refinery would be integrated with an industrial hydrocarbon park designed to convert natural gas and refined petroleum products into hydrocarbon derivatives.

Engr. Oniwon who was represented by Engr. Adebayo Ibirogba, Group General Manager, Greenfield Refineries of the NNPC, noted that the proposed Kogi Refinery would attract new industries to the state and with the dredging and maintenance of sufficient navigable drafts on the River Niger, the State would become investors haven.

"The executives of the CSECC are here with us today, because we have commenced preliminary project design activities and they wanted to appreciate the physical environment of the location proposed for the Kogi State Refinery. We therefore hope that at the end of this ceremony, we shall be in a position to jointly inspect the site and set in motion, the full machinery to take physical possession so that pre-construction activities can commence in earnest," said Engr. Oniwon.

The GMD called on the Kogi State Government to participate in the development of the project as a co-investor assuring that aside financial returns, the refinery would create job opportunities for up to 3,000 construction workers and an estimated 2,000 workers to run the industrial complex.

Moving swiftly, the Governor presented a Certificate of Occupancy for a 450 hectares stretch of land across the bank of the River Niger in Itobe village, Ofu Local Government Area of the state as a proposed site for the refinery.

The Governor assured the joint delegation of NNPC and CSECC that the State Government was prepared to provide a conducive environment for the smooth operation of the refinery while assuring the security of lives and equipment.

The leader of the Chinese delegation and Vice President of CSECC International division, Mr. Yu Zhende in his remarks stated that the Corporation was ready for the economic partnership, which would generate employment opportunities and stimulate the economy of Kogi state.

Currently ranked the 6th largest Engineering and Construction Company in the world, the CSECC will not only assist in sourcing for funds on competitive terms for the project but is also expected to ensure that bona fide Chinese investors take up at least 25% of the equity holding in the project.

When completed the Kogi State Refinery is expected to produce about 300,000 metric tons of Liquefied Petroleum Gas per annum. The NNPC projects that the availability of such a volume of LPG will trigger a massive increase in the consumption of cooking gas as the preferred domestic household fuel, replacing firewood, charcoal and kerosene.