Ogun State to Build N3bn Oil Refinery, Generates 110 Megawatts of Electricity

Ogun state will soon get an oil refinery of 100,00 barrels capacity per day. The refinery which will be built in a major partnership with Gasoline Integrated International will also generate a culmination of 110 Megawatts starting from 37 Megawatts.  

Speaking on the development, the state governor, Dapo Abiodun noted that the oil refinery which will start with a production capacity of 100,000 barrels per day will be expanded to 400,000 productions in the future.  

The governor added that after completion, the refinery would create about 10,000 direct and indirect jobs. 

Investors King understands that the proposed refinery in Ogun State will be the second in the South West after Dangote Refinery situated in Lagos. 

When operational, both refineries will not just generate jobs but also ensure a steady supply of petroleum products within the region. 

It would be recalled that Dangote Refinery is the world’s largest refinery in single production with a production capacity of 600,000 barrels per day. Dangote Refinery is expected to begin operations within the first quarter of 2023. 

While speaking further on the new development, Governor Dapo Abiodun stated that the refinery which “would sit on 800 hectares of land” will increase the internally generated revenue of the state. 

He concluded that the project which is estimated to cost N3 billion will be completed in three years. 

Meanwhile, the Group Managing Director of NNPC, Mele Kyari has stated that selling fuel at the price of N170 per litre is no longer sustainable.

The GMD noted that market conditions such as high exchange rates have forced the landing cost of fuel to about three time the value of the pump price. 

While stating that subsidy cost NNPC about N19 billion per day, he noted that for some parts of the country, NNPC pays as high as N290 a litre as fuel subsidy. 

He added that the world is facing high costs of energy. He claimed that most countries have removed fuel subsidy and Nigeria should not be an exemption.