By Clara Nwachukwu
To strengthen domestic refining capacity and enhance sustainable fuel supply in the country, the Nigerian National Petroleum Corporation (NNPC) and China State Engineering Construction Corporation (CSECC), are in talks to constrict a greenfield refinery in Kogi State.

The Group Managing Director of the Nigerian National Petroleum cORPORATION, NNPC, Engr. Austen Oniwon and the Managing Director of Addax petroleum Development Nigeria Limited, Mr Philip (Xinmin) Wu discussing areas of Collaboration at the NNPC Towers Abuja on Monday.

This was made known when a team from the NNPC and Chinese investors visited the state to appraise the site for the proposed refinery and kick start preliminary project design activities.

Kogi 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.

Presenting a graphic picture of the project to the State Governor, Dr. Ibrahim Idris in Lokoja, the Group Managing Director of the NNPC, Mr. Austen Oniwon said when completed, the proposed Greenfield Refinery would be integrated with an industrial hydrocarbon park designed to convert natural gas and refined petroleum products into hydrocarbon derivatives.

Industrialisation and job creation Among the numerous benefits of the greenfield refinery is not only in the state’s economic expansion through rapid industrialisation, but also the creation of thousands of new jobs.

Represented by Mr. Adebayo Ibirogba, the Group General Manager, Greenfield Refineries of the NNPC, Mr Oniwon noted that the Kogi Refinery will attract new industries to the state, adding that with the dredging and maintenance of sufficient navigable drafts on the River Niger, the state is set to 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 Mr. Oniwon.

Urging Dr Idris to participate in the development of the project as a co-investor, The NNPC boss also gave the assurance 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.
Site approval

In response, the governor presented a Certificate of Occupancy for a 450-hectare 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 the NNPC and CSECC that the state government is prepared to provide an environment conducive 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, said 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 percent of the equity holding in the project.

When completed the Kogi State Refinery is expected to produce about 300,000 metric tonnes of Liquefied Petroleum Gas (LPG) or cooking gas per annum. It is anticipated 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.