Construction work is set to begin on the Imo Refinery and Petrochemical project as soon as the final approval is given by the Federal Government, says Dr. Anthony Chukwueke, chairman of the implementation committee for the Imo Refinery and Petrochemical Project.

Chukwueke, who was speaking on Wednesday to journalists in Abuja, noted that feasibility studies on the $2.5 billion project had been completed, and land acquired by the state government, adding that construction of the refinery would last between five and seven years.

He said, “Our earnest desire is to have the refinery and petrochemical plant up and running within the lifespan of the incoming administration, and we are committed, along with our partners, to accelerate the process so that we could finish in record time.”

He explained that the refinery project is a private-public initiative driven by the Imo State government in partnership with prospective investors from South Korea and India and the Nigerian National Petroleum Corporation, which acts on behalf of the Federal Government.

According to him, “Hopefully after the elections that are going on, we will get the government to sign, so that’s basically where we are.”

Chukwueke said the Nigeria National Petroleum Corporation, NNPC, had already signed an agreement in principle supporting the 100,000 barrels per day refinery in the south-eastern part of the country.

He said, “We now need for the government to bless the agreements because it contains some incentives we want to put in for investors, and when we have obtained this, we will be in a position to invite investors to participate.”

Chukwueke said the plan was to ramp up production at Imo to 200,000 or 250,000 bpd, with first refined oil likely by 2016.

He added that land for the refinery had already been identified. The project sited at the Egbema/Oguta Industrial Park, which also houses the Federal Government’s Light Vessels Port Facilities and Naval Base, is the hop for the industrial development South East zone, identified as a key driver for job creation.

He said, “In recognition of the urgent need and size of the project, the Imo State Government has made available 400 hectares of suitable land in Egbema and Oguta in the area designated for the Industrial Park.

The location is capable of housing the planned take-off capacity of 100,000 bpd for the refinery with allowances for future expansion to up to 250,000 bpd.

“The Light Vessels Port cited at the same location is now under construction and the State Government is embarking upon access road construction, existing roads upgrade, Right Of Way acquisition, site preparation and civil works.”

Chukwueke further explained that the ongoing extensive dredging of the River Niger will provide the main supply and evacuation route for goods and services associated with the project.

He added that, “The Imo Refinery and Petrochemical Project was conceived by the Imo State Government in 2008 to leverage the abundant oil and gas resources of Imo State to meet the energy requirements of the South East Zone and thus provide meet a critical driver for the rapid industrialization of the South east Zone; the availability of affordable and steady energy supply.”

According to him, the actualization of Imo Refinery and Petrochemical Project will go a long way in meeting a key aspiration of the people of the South East Zone of the country and provide the desired dividend of democracy to the people of the zone both in terms of job creation and linked infrastructural and industrial development.

“The project perfectly fits into the Gas Revolution and Job Creation Agenda of President Goodluck Jonathan and the determination of Mr. President to meet the nation’s demand for petroleum products through domestic refining.

“In championing the refinery and Petrochemical Project, the Imo State Government of Chief Ikedi Ohakim, in partnership with the Nigerian National Petroleum Corporation (NNPC), has identified suitable location for the plant in the vicinity of the location of oil and gas reserves that would guarantee long-term feedstock supply for the project.

The cost of implementing the Imo Refining and Petrochemical Project together with the development of the associated upstream assets is presently estimated at US$2.5 billion. The project is expected to be fully funded by the private investors who are also the developers of the project. Key upstream investors and proven refiners have already been identified and are ready to

Furthermore, he said, Government is promoting the use of LPG (cooking gas) to replace firewood for domestic cooking, is projected to increase the demand for LPG in the South East zone from the present 30000 metric tons per annum to some 45000 metric tons per annum by 2012.

The demand for LPG for domestic consumption as well and plastics and chemicals for the industrial sector is planned to be met by the project.

http://www.imostate.gov.ng/news/818