A new refinery with initial 50, 000 barrels a day capacity is set to be launched by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), and its partners.
LEADERSHIP learnt that the agreement and Memorandum of understanding (MoU) to facilitate the immediate construction process of the facility will be signed in the next few weeks.
President of PETROAN, Billy Gillis-Harry, who confirmed this to our Correspondent in a chat said the deregulation of the downstream segment of the oil and gas industry is paving way for fresh investment in the sector.
He said the association has supported total deregulation of the downstream segment of the industry so that subsidy payment for Premium Motor Spirit (PMS) also called petrol will be channeled to other critical sectors of the economy like health, transportation and education among others.
Speaking with our Correspondent on what the government should deliver in the energy sector next year to enhance socio-economic activities, Billy Gillis-Harry, said the Association has been in the vanguard of ensuring sufficient energy supply to boost economic development and growth.
He said subsidy payment in the oil and gas industry is not sustainable but what is sustainable is freeing the market to attract investments and ensure sustainable product supply.
“We have positioned ourselves as advocates for product affordability and availability and that is why we are entering into partnership for the establishment of a modular refinery”.
On things the government should do to bring down the price of petrol, Gillis-Harry said the cost of getting funds from commercial banks is on the high side.
According to him, bank rates on borrowed funds is as high as 28 per to 35 per cent which is factored into purchased products.
He advised that the government can facilitate funds more accessible to marketers with the establishment of Nigeria Energy Bank (NEB) to act like a local subsidiary of African Energy Bank (AEB).
This he sold will make funds available to marketers in one single digit to buy petroleum products and make the country wet all year round.
He also advised that the government can channel subsidy money to enhance rail transportation to move products sustainably to depots to enable marketers to load at various depots very cheaply.
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