The Federal Government has summoned 23 companies licensed to establish (LTE) Modular Refineries, to report on progress made so far, BusinessDay reports.
The status report, according to a source close to the Department of Petroleum Resources (DPR) wouldenable it make informed decisions on the companies and determine how to encourage this group of investors. Currently there is only one modular topping refinery operating in the country. It is situated at Ogbele in Rivers State and produces 1,000 barrels of diesel per day. The refinery is being operated by Niger Delta Exploration and Production plc.
Two firms that have carried out extensive studies on the nation’s refineries, Solomon and Associates, an energy benchmarking organisation, and AON, a risk management firm, have however warned the government about Modular Refineries because engaging such refineries would amount to huge economic waste. According to the report of the firms, the petroleum markets in country, favours consumption of light and middle distillates which are not produced by modular refineries. They said in addition, the use of fuel oil to fire furnaces in local industries is declining rapidly, as it is being replaced by natural gas, which is cleaner and abundantly available nation-wide.