Captain Emmanuel Iheanacho, Chairman, Integrated Oil and Gas Company Ltd.
One of Nigeria’s leading advocate for modular refinery, Captain Emmanuel Iheanacho, Chairman, Eko Refinery and Petrochemical Company Limited has appealed to Federal Government to support local refiners with sovereign guarantee to secure loans for the completion of their modular refineries. It will be recalled that Integrated Oil and Gas Company Limited of which Iheanacho chairs, is building a modular refinery at Tomaro Island in Lagos.
Iheanacho made the appeal in Lagos against the backdrop of inability of the local refiners to secure loans to complete their ongoing modular refineries in the country.
Sovereign guarantee means a promise by the government to discharge the liability of a third person in case of his default, which are contingent liabilities of the central and state governments that come into play on the occurrence of an event covered by the guarantee.
Iheanacho stated further that government does not necessarily need to provides its own funding but gives guarantees to any of the local promoter of refining capacity who demonstrates that there refinery design and programme are viable, that is the only way to help to secure loan.
Iheanacho also explained that if government could assist the operators to secure finance, it would go a long way to assist them realise some of the benefits that would drive the country’s economic growth.
The 250 million dollars proposed refinery will be a reference point in Nigeria when completed. The 20,000 refinery was coming at a period when stakeholders had faulted move by government to co-locate refineries, rather than support holders of modular refinery licences.
The Tomaro refinery is expected to begin production with Automated Gas Oil (AGO) known as diesel, Dual Purpose Kerosene (DPK), export quality aviation fuel, Naphta and fuel oil.
Iheanacho expressed optimism that the plant would be upgraded to produce Premium Motor Spirit (PMS) also known as petrol, as operations progressed. The facility is designed as one-stop shop comprising refinery plant, storage facility, flour mill, ship repair yard, helipad for aviation operations to offshore platforms and resort centres. The project would also create massive employment for the teeming youths of the country while the 20,000bpd crude oil refinery project site at the Tomaro Industrial Park and Free Trade Zone in Lagos was designed to boost refining capacity in the country.