Crude Oil Refineries Owner’s Association of Nigeria (CORAN) chairman, Mr. Momoh Oyarekhua, has expressed concern over the inadequate supply of crude oil to its members. In an exclusive interview on Channels TV Business Morning show, Mr. Oyarekhua discussed the removal of fuel subsidy and emphasized the potential of modular refineries to contribute to Nigeria’s energy sector. However, he highlighted the need for sufficient crude oil supply to ensure the success and growth of these refineries.
Mr. Oyarekhua dismissed claims that modular refineries lack the capacity to bridge the existing market gaps. He affirmed their importance for the Nigerian economy and energy security, citing the economic benefits they offer, such as subsidy elimination. Modular refineries locate themselves near the point of production, reducing transportation costs and eliminating intermediaries, resulting in cost reduction and increased accessibility of petroleum products.
Addressing concerns about limited refining capacity, Mr. Oyarekhua pointed out that while traditional refineries have higher capacities, the cumulative capacity of all modular refineries exceeds that of a single conventional refinery. He emphasized that the combined effect of strategically installing modular refineries across the country contributes to Nigeria’s refining capacity, reducing the need for imports and enhancing energy security.
Mr. Oyarekhua called on the government to fulfill its obligations regarding crude oil supply to modular refineries. According to previous DPR operating laws and the Petroleum Industry Act (PIA) bill, the government is expected to supply 60% of the required crude oil. He emphasized that the lack of crude supply hinders the operation of modular refineries and discourages potential investors, urging the government to intervene and support the industry.
Contrary to concerns about competition from larger refineries like Dangote Refinery, Mr. Oyarekhua highlighted the importance of strong competition for industry progress. He stated that CORAN members are committed to their value proposition, which includes decentralized refining capabilities, local economic empowerment, and meeting specific regional demands. Each modular refinery serves its catchment area, ensuring localized supply and meeting the unique market demands of nearby states.
CORAN’s chairman, Mr. Momoh Oyarekhua, stressed the significance of adequate crude oil supply to modular refineries for their successful operation and contribution to Nigeria’s energy sector. He urged the government to fulfill its obligations, highlighting the economic benefits and energy security advantages that modular refineries can offer. By addressing supply issues, Nigeria can harness the potential of modular refineries, promote healthy competition, and drive down prices while ensuring localized supply and meeting regional demands
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