TheCable

The Edo Refinery and Petrochemical Company (ERPC) says the Edo modular refinery will, at full capacity, meet 100 percent of Nigeria’s low pour fuel oil (LPFO) or black oil demand.

In a statement on Monday, Michael Osime, chairman of EPRC, said the Central Bank of Nigeria (CBN) will have to remove the product from its foreign exchange list when the company meets the local demand for LPFO.

“The modular refinery has achieved 95 percent mechanical completion. The pre-commissioning activities are expected to commence soon,” Osime said.

“Our expansion programme to 30,000 barrels per day (bpd) will save in excess of $350 million in foreign exchange per annum.

“The facility will also meet 100 percent of the demand for LPFO per annum. Therefore, with our production capacity, the CBN can remove LPFO from the foreign exchange list.

He also commended the federal and state governments for their support which led to the speedy realisation of the project.

“On behalf of the management of engineering, procurement and construction (EPC) contractor and staff of ERPC, I would like to express our gratitude to the federal government of Nigeria for creating good business environment under the ease of doing business programme and fiscal incentives such as duty waiver.

“We appreciate the Edo state government for giving support of N700 million and good business environment and our host community, the Ologbo community.”

Labour intensive companies like textile manufacturing companies, food and beverages and construction companies use low pour fuel oil in steam generation.

The federal government has been encouraging businesses and states to invest in modular refineries to eradicate illegal refineries and slowly end the importation of refined petroleum products.