Abia to provide 100 hectares of land for modular refineries, gas processing plants

Abia state government says 100 hectares of land will be provided to private sector players in the oil and gas industry for the construction of an environmentally friendly energy hub.

Alex Otti, Abia state governor, said this at the recent annual international strategic conference of the Association of Energy Correspondents of Nigeria (NAEC), held in Lagos.

The governor — who was represented at the conference by Joel Ogbonna, the state’s commissioner for petroleum mineral resources — said the state will provide the infrastructure and an enabling environment for the hub.

Otti said the private-public partnership (PPP) arrangement will produce a hub that will host a modular refinery, compressed natural gas (CNG), and liquified petroleum gas (LPG) processing plants.

“The Abia State Government’s decision to provide land and infrastructure for the project is a significant step towards achieving a sustainable energy future. The project will also create job opportunities for the citizens of Abia State and boost the state’s economy,” he said. 

“We are committed to unleashing and spending resources on technology and infrastructure to make this agenda a reality. We are however committed to decarbonisation to reduce our carbon footprint.

“So as a government in Abia state, we have decided to drive a good environment clean initiative.”

According to the commissioner, the energy transition hub will help reduce the carbon footprint of the oil and gas industry.

He added that crude oil, in its natural state, has little economic and financial value if the molecules are not broken down into useful commodities — including petrochemicals and plastics. 

“Governor Otti has decided to make Abia state a new hydrocarbon investment haven,” Ogbonna said. 

“He has initiated the idea of establishing an importation bank so that we can take advantage of those resources. 

“This would enable us to bring all the players together for an investment and establishment of modular refineries, petrochemical plants, fertilisers plants and logistics in Abia state.”

Ogbonna said the government is seeking partnerships in the oil and gas industry for resources management to build a state where there is economic prosperity, environmental protection, and social equity.

He added that the state is determined to provide infrastructure and an enabling environment for every investor seeking to establish modular refineries and petrochemical plants in the state.