…as Modular Refinery in Energy Park test runs in Egbokor Community
By Henry Oqua & Tee Olatunji
The Edo State Governor, Mr Godwin Obaseki has said that the Memorandum of Understanding (MoU) which his administration signed with partners has produced the new energy park which was test run on Monday, October 24, 2022 in Egbokor Community in Orhionmwon Local Government Area of the State.
Even as Nigerians grapple with the effects of the October 17th force majeure announced by the Nigeria Liquified Natural Gas Limited (NLNG) as a result of flooding, Edo residents are set to benefit from the new 10, 000 bpd modular refinery, 50 MW power plant, Tier-4 Data Centre and 10 million SCF Compressed Natural Gas (CNG) plant all contained in the new Energy Park.
A visibly delighted Governor Obaseki described the project as the first of its kind in Africa, and “a major leap in terms of investments in Edo State”, pointing out that “for many years, they were calling us an MoU government. Now you can see how these MoUs are coming into fruition.”
The energy park features a 10,000 barrels per day refinery, a 50 Mega Watts power plant, a 60 million Standard Cubic Feet (SCF) Liquefied Natural Gas (LNG) processing plant, 10 million SCF Compressed Natural Gas (CNG) plant and a Tier-4 Data Centre developed in partnership with the Nigeria Content Development and Monitoring Board (NCDMB), Duport Midstream Company Limited, Summit Oil and other partners.
Recall that the NLNG announced that due to flooding across the country, their suppliers are now unable to meet their obligations to supply gas. Following the successful test run of the Duport facility, the refinery is now set to begin full production of kerosene, diesel, naphtha, electricity and gas before the end of Q1, 2023.
“It means that because of the benefits and advantages that we have in the state to have onshore oil and gas production, we are now attracting investors to utilize that production locally. Our goal is that every drop of crude oil and every bit of gas that is produced in Edo state is used here for our national development, rather than exporting it.
“This is quite significant because in a matter of a few months, we will have to deregulate, which means that gas will be cheaper for use than the refined products,” Mr Obaseki said.
Obaseki who has received flack from critics over his signing of Memoranda of Understanding, took the time to explain that huge projects like the energy park which is a result of an MoU, has already employed several Edo indigenes.
“We are very pleased because all we have talked about; all we have dreamt about is becoming a reality. For many years, they were calling us an MoU government. Now you can see how these MoUs are coming into fruition.” the governor reiterated.
He went on to explain that the new Edo State Electricity Law has made it possible for the state government to create its own electricity market, and encouraged Duport Mainstream to increase its power output to serve the neighbouring communities in the State through distributors.
“We also want to inform you that Edo State now has a new electricity law which creates for us an electricity market; which means that the government has the authority to give licenses to people who now want to do electricity business in Edo state.
“Now that you have capacity, I would encourage that you look at expanding that capacity to beyond the 50MW, and encourage distributors to come in and buy power from you so that you sell electricity across the said areas.” he said.
Speaking about areas of further government support, Mr Obaseki said his administration will provide the needed road infrastructure, adding that schools and healthcare facilities in the area and surrounding communities will receive the needed attention.
“We are very interested in attracting investors to communities like Evbuesi, Abudu and the surrounding communities so that we can attract investors and investments to these areas.
“We will be calling on you as our partners to work with us to see what our plans are for the adjoining communities; for the educational facilities in these communities, we have to jointly build the schools together and make sure we have quality teachers to provide quality education. Also in terms of healthcare, we will share our plans with you and see which of these projects you can support these communities with, but more importantly begin to ensure that we build manpower that will help you sustain this investment.
Speaking to journalists, the Managing Director of Duport Midstream Company Limited, Mr Akintoye Akindele noted that life will be much easier for Edo residents through the savings advantage they are set to enjoy with the energy park coming online soon.
“You can imagine the impact of this to the community when products that are scarce or expensive like kerosene and diesel, are bought locally here, so there’s no storage or transportation cost, no levies or taxes in that sense. Hence we expect people to sell below the current market prices because of these savings which will now be passed on to Edo residents.
Mr Akindele said Duport is happy in Edo, while thanking the State Government, and the community for the support his company and partners have enjoyed.
“We also want to commend the community who have worked with us and supported us, we are truly grateful. We are happy in Edo State, we want to stay here and we want to expand.” he said.
