News on the N25.8bn Lagos
Refinery project went viral yesterday. Former Interior Minister,
Captain Emmanuel Iheanacho
issued a response last night. The
Imo state Governorship candidate
of the All Progressives Grand
Alliance party (APGA) in the last
elections provided an insight into
the factors which determined the
investment location decision.
Here’s what he had to say:
I am glad you guys got around talking about my refinery project.
Perhaps i can give you some
additional heads up on the project
and the unique factors which
determine its location.
I have a license to develop a 20,000
bpd modular refinery at a specific
coastal location in Lagos state. The
refinery is one of a number of
marine infrastructure development
projects which i currently have in
conception.
Were it possible to locate some of
these projects in Imo, i would have
gladly done so but unfortunately,
due to the marine specific nature of
the contemplated developments, non
can be sited in Imo. As a general
rule refineries are usually sited in
coastal locations because of the need
to facilitate the supply of crude
feedstock to the refinery by supply
tanker vessels.
Refined fractions are also evacuated
from from the refinery by sea. Sadly,
Imo state does not have a seaport or
other maritime infrastructure that
could serve as a basis for a decision
to bring these investments home.
In some cases, a refinery may be
built in the hinterland, away from
the coast. This may occur where the
investor has an ownership interest
in a marginal field from where they
can source the feedstock . They
would also need to have a number of
flow stations in close proximity to
the field through which they would
have to reprocess any naphta
through reinjection into the crude
stream. Unfortunately, i don’t own a
marginal field and cannot therefore
consider building a refinery in the
hinterland.
I hope i have given our people an
insight into the factors which
determined the investment location
decision. Please get our people to
pray for our success. They would
derive great benefits from the
programme if our plans are
ultimately successful.
Captain Emmanuel Ihenacho
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