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Modular Refineries Panacea To Petrol Importation

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It is not in doubt that Nigeria is one country that is beautifully endowed with natural resources, especially hydrocarbon. She is rated the largest oil producer in Africa and the sixth in the Oil Producing and Exporting Countries (OPEC). She was the fifth largest supplier of crude to the United States of America (USA) until the shale gas discovery, an alternative source of energy, and the eleventh in the world.

Recently, at a three-day annual conference and exhibition of the Society of Petroleum Engineers (SPE) Nigeria in Lagos, the Petroleum Minister, Mrs Diezani Alison-Madueke, said critically the nation’s crude oil reserve was over 36 billion barrels and a current production capacity of about 2.5 billion per day which she acknowledged have made Nigeria the highest supplier of crude oil.

Alison-Madueke also expressed government’s determination to meet the oil reserve’s growth target of 40 billion barrels and an increase in production capacity to 4 million barrels per day by 2020. But the country still remains a net importer of petroleum products.

It is based on the premise that Nigeria being so richly endowed with crude oil but keeps importing refined petroleum products that stakeholders in many fora do not hesitate to condemn this action. Some describe it as a shame and scandalous.

Presenting a paper titled, “Sustainable Refinery Turnaround Maintenance” at the First International Conference on Petroleum Refining and Petrochemicals in Port Harcourt recently, Engr Tony Ogbuigwe, Group Executive Director Refining and Petrochemicals, Nigerian National Petroleum Corporation (NNPC) disclosed that within the past five years, the sub-optimal refinery capacity utilisation in the country averages about 20 per cent, while the bench-mark elsewhere was 60 to 80 per cent.

Mr Reginald C. Stanley, Executive Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA) also delivering a paper at the same conference buttressed on the non-functional and low capacity utilisation of the nation’s refineries saying that the four local refineries with the capacity of 445,000 bpd capacity could only contribute about four to twenty per cent in the past five years to the national Petroleum Motor Spirit consumption.

Therefore, getting the four existing refineries to function efficiently is indeed a long term solution to meet the domestic demand for petroleum products in the country.

The President of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Babatunde Ogun was quoted as saying that “If the TAM of the four refineries are done, which is supposed to be like 24 months give or take …. We would have been able to achieve about 80 per cent of what we expect if all of them are working maximally”.

However, some industry experts say with the four refineries functioning maximally they could still not adequately meet our local demand. Besides, there are other neighbouring countries that depend on us for these products. How do we meet this demand when the four refineries, at peak production, could barely meet domestic demand?

The need for a change of paradigm from a net importer of refined petroleum products to a major net exporter with our richly endowed raw material makes the call by Professor Godwin Igwe for the establishment of a modular refinery in each of the 36 states of the federation necessary. There is no nation, the world over, that can attain riches by exporting its raw materials without having a vibrant industrial base.

According to Prof. Igwe, to be a net exporter of refined petroleum products, the establishment of modular refineries in the 36 states of the federation is a must.

He said modular mini-refineries can provide flexible and cost effective supply option for crude oil producers in remote areas and very useful where there was a need to adapt rapidly to meet local demand.

He explained that with modular refineries which have relatively low capital cost, easy to construct and high speed, unit modules from 4,000 bpd up to 30,000 bpd primary distillation capacity could be produced. It could also be improved with debottlenecking to create a refinery of 100,000 bpd production capacity or more, he noted and added that they are usually prefabricated in workshop conditions and shipped to site for assembly.

Close proximity to crude supply, nearness to sizeable market and with logistic advantages which would decrease high distribution costs in remote regions, project finance on preferential terms from development credit agencies and some government incentives to regional development were some of the conditions required to make investment in modular refineries workable.

Explaining further on refinery investment, the professor in chemical engineering said, “the overall economics or viability of a refinery depends on the interaction of three key elements: the choice of crude oil used or crude state; the complexity of the refining equipment or refinery configuration; and the desire type and quality of products produced or product state.

Prof. Igwe, however, acknowledged that due to the importance of crude oil to the petroleum refining industry, the transportation cost associated with moving it from the oil field to the consuming regions and the crude qualities have made it more economical for distant refineries to use imported crude. But pointed out that similar factors have led some countries to the development of modular mini-refineries in crude producing regions since locating them close to the source of crude minimizes the logistics and distribution cost.

Instances of countries that have adopted the use of modular refineries include Papua New Guinea, Eromanga, Queensland Australia, Indonesia, Iran and Iraq.

In view of the foregoing, the effort of the federal government in signing a Memorandum of Understanding (MoU) with Petroleum Refining and Strategic Reserve (PRSR) Ltd and Vulcan Capital Corporation (VCC) Ltd for the establishment of six modular refineries in the country is very commendable.

The NNPC said in a letter that “the establishment of modular refineries is practicable and desirable to increase local refining capacity. The Corporation will be available to conduct detailed technical evaluation in conjunction with the investor group subsequently” and promised to make “utmost endeavour to ensure oil supply to the planned six modular refineries” but “subject to availability and location of refineries”.

This, indeed is a step in the right direction and should not only end at just six but more, may be the 36 suggested by Prof. Igwe if the nation must move from the present quagmire.

 

Vivian-Peace Nwinaene

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Aiyedatiwa Signs New Electricity Bill

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Ondo State Governor, Lucky Aiyedatiwa has signed the State Electric Power Sector (Amendment) Law, 2026, aimed at strengthening regulation and attracting investment into electricity generation, transmission and distribution across the state.
The new legislation, passed by the State House of Assembly, amends Ondo State Electric Power Sector Law, 2020, and aligns the state’s electricity framework with recent constitutional and statutory developments, particularly the Electricity Act, 2023.
A statement issued by the Chief Press Secretary to the Governor, Prince Ebenezer Adeniyan, said a major provision of the law was the establishment of State Electricity Regulatory Commission (SERC), an independent body responsible for regulating electricity activities and standards in Ondo State.
It added that the commission would oversee tariffs, open access, franchises, third-party investments, mini-grids and renewable energy development, while also issuing licences and permits for electricity generation, transmission and distribution facilities.
“The law also provides for the establishment of the State Independent System Operator (SISO) and State Market Operator (SMO) to facilitate the effective operation and development of the state’s electricity market.
“Under the amended law, compulsory metering is required for both grid-connected and off-grid electricity consumers. Electricity sellers are mandated to provide appropriate meters, while consumers will maintain direct service and payment relationships with their respective electricity providers.
“The legislation also provides legal protection for electricity infrastructure financed by communities, associations and private individuals. Transformers, distribution lines and other facilities connected to the public distribution network are protected against arbitrary interference,” the statement said.
It stated further that the law creates the offence of “Electricity Infrastructure Expansion Sabotage” for anyone who deliberately prevents certified electricity infrastructure from being connected to the grid.
According to the statement, first conviction attracts a N2 million fine, as well as an additional N25,000 for every day the refusal continues after written notice from the regulatory authority.
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NLNG Commissions Research And Innovation Centre In RSU

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The Nigeria Liquified Natural Gas (NLNG) has launched the Research and Innovation Centre for Computer and Electrical Engineering (RICCEE), in the Rivers State University, a major research and development initiative jointly promoted by Nigeria LNG Limited (NLNG) and the Nigerian Content Development and Monitoring Board (NCDMB).
The project, valued at US$6.2 million, is being implemented under NLNG’s Human Capacity Development (HCD) Plan and forms part of the NCDMB Human Capital Development Institutional Strengthening Programme.
The centre is designed to strengthen the university’s capacity for advanced, industry-relevant research, specialised training, technology development and practical problem-solving in computer, electrical and electronics engineering.
The initiative is expected to promote industry-focused research and develop innovative solutions to operational challenges confronting Nigeria’s energy and industrial sectors.
The facility would be developed on approximately 9,336 square metres of land within Rivers State University and will comprise a three-storey building of more than 9,000 square metres, containing 18 specialised laboratories.
The laboratories would include facilities for Electronics and Signal Processing, Robotics and Embedded Systems, Software Engineering and Digital Forensics and Cybersecurity as well as  provide offices, storage areas and technical administration spaces to support research, teaching and equipment management.
The building would incorporate sustainability features, including solar energy provisions, energy-efficient lighting and environmentally responsible systems designed to reduce operating costs and support reliable research activities.
A US$1.2 million Professorial Chair would also be established as part of the initiative to support advanced research, academic leadership, and industry collaboration.
Speaking at the groundbreaking ceremony, last Thursday, the Managing Director and Chief Executive Officer of NLNG, Adeleye Falade, who was represented by Dr Sophia Horsfall, General Manager, External Relations and Sustainable Development of NLNG, described the new engineering facility as more than infrastructure, noting that it would serve as a hub for equipping students, lecturers and researchers with the tools required for practical learning, applied research and innovation in computer, electrical and electronics engineering.
Represented by the General Manager, External Relations and Sustainable Development, NLNG, Sophia Horsfall, Falade stated that the centre would strengthen collaboration between academia and industry and ensure that research outcomes from Rivers State University directly address operational and societal challenges facing Nigeria.
He explained that the project is aimed at improving the capacity of institutions of learning through upgraded infrastructure, modern research facilities, technical equipment and industry-aligned training programmes that extend human capital development beyond the classroom.
According to him, the centre would help bridge the gap between academic knowledge and practical industry requirements by enabling researchers and professionals to collaborate on innovations with commercial and developmental relevance.
Falade emphasised that while infrastructure is important, people remain the greatest investment, noting that education delivers the highest return by building confidence, competence and capacity for national development.
He further announced that NLNG’s Research and Development Implementation Consultancy would be based at the centre upon completion adding that the consultancy would support the development of a robust research and development framework in line with the Nigerian Oil and Gas Industry Content Development Act, 2010 and facilitate commercially viable, industry-relevant research in partnership with selected tertiary institutions.
Falade commended the Nigerian Content Development and Monitoring Board (NCDMB) for its leadership in bringing industry and academia together and reaffirmed NLNG’s commitment to sustainable human capital development and indigenous technological advancement.
On his part, the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, who was represented by the Director, Capacity Building Directorate, Engr. Abayomi Bamidele, described the groundbreaking ceremony as a significant milestone in the implementation of the Board’s Human Capital Development objectives.
Ogbe confirmed that NCDMB is fully aligned with NLNG in the implementation of the RICCEE project and would work closely with all stakeholders to ensure its successful execution and completion, commending the NLNG for its commitment to the project.
He explained that the project forms part of NCDMB’s Institutional Strengthening Programme, which seeks to establish enduring partnerships with institutions of higher learning by providing infrastructure that enhances teaching, research, innovation and practical skills development.
He challenged the centre to become a vibrant hub of discovery, creativity, enterprise and technological advancement, where students would be inspired to innovate, researchers would develop solutions to real-world challenges and industry would find reliable partners for research and development.
He also commended NLNG for its commitment to the project and praised the Governing Council, Vice-Chancellor and management of Rivers State University for their dedication to academic ex.
In his address, the Vice-Chancellor of Rivers State University, Prof. Isaac Zeb-Obipi, described the occasion as a historic milestone for the institution and reaffirmed the university’s vision of becoming a leading institution focused on solving practical societal problems through research, innovation and human capacity development.
Prof. Zeb-Obipi stated that the RICCEE project aligns with the university’s 2026–2030 Strategic Development Plan, which prioritises the improvement of academic programmes and the strengthening of research collaboration, innovation and entrepreneurship.
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Reps Demand Urgent Action On Bille Gas Seepage, Odidi Oil Spill

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The House of Representatives Committee on South-South Development Commission has demanded urgent and concrete measures to resolve the prolonged gas seepage in Bille Community, Rivers State, and the oil spill affecting Odidi Federated Community in Delta State.
Chairman of the Committee, Hon. Julius Gbabojor Pondi, made the demand during an urgent Stakeholders’ Engagement on the Bille gas seepage and a Legislative Hearing on the Odidi oil spill, in Abuja, last week.
Pondi said the two incidents had exposed host communities in the oil-producing region to prolonged environmental hazards while responses from relevant authorities had yet to produce satisfactory and timely resolutions.
The Committee’s intervention comes amid growing concerns over environmental degradation in the Niger Delta, where communities dependent largely on fishing, farming and other natural-resource-based livelihoods continue to contend with the consequences of oil and gas activities.
Pondi said the Committee’s concern over the Bille incident was heightened following its engagement with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the National Oil Spill Detection and Response Agency (NOSDRA) on July 30, 2026.
He said the Committee was deeply concerned that the gas seepage had persisted for approximately nine months without a clear end in sight.
“The implications are serious. Beyond the potential risks to health, safety and the environment, the incident has imposed severe economic hardship on the people of Bille,” Pondi said.
He noted that Bille, a predominantly fishing community, had suffered consequences affecting livelihoods, food security, household income, education and the general well-being of families.
“It is unacceptable for an incident of this magnitude to persist for so long without a clear, time-bound and effective resolution strategy,” he stated.
According to Pondi, the engagement was intended to establish the facts surrounding the incident, assess the response so far, identify obstacles and agree on practical, measurable and time-bound actions.
He said the Committee expected comprehensive briefings from the operating company, NUPRC, NOSDRA and other relevant agencies on the cause, extent and current status of the seepage, while representatives of Bille Community would be given an opportunity to present their concerns and the relief and interventions required.
“Most importantly, we want to move from prolonged discussion to concrete action and lasting resolution,” he said.
Giving an account of the agency’s technical findings, a Director of NOSDRA, Dr Yusuf Rigasa, said investigations had established what he described as “multi-point subsurface gas bubbling” at several locations in Bille.
He stated that gas bubbling had been detected around the premises of the Government Primary and Secondary School, as well as in waterways and certain mangrove areas.
According to him, NOSDRA conducted an air-quality assessment on December 6, 2025, across 19 stations and recorded elevated levels of hydrogen sulphide, methane, volatile organic compounds and carbon dioxide.
Rigasa explained that hydrogen sulphide has a characteristic rotten-egg smell, while methane is highly flammable and potentially explosive.
The concentrations recorded, he said, exceeded applicable regulatory thresholds.
Rigasa stated that the agency’s reference laboratory also analysed samples collected on December 16, 2025, and found elevated levels of total petroleum hydrocarbons in groundwater, surface water and sediment samples adding that
findings indicated that soil, surface water and groundwater in parts of Bille had been affected by pollution.
What we can confirm for the House is that the air, the groundwater, the surface water and the sediment in the swampy areas in that village, they are all polluted,” he said.
 The NOSDRA official, however, said the agency had not established that the gas was from a hydrocarbon source.
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