Ubah Urges FG to Prioritize Modular Refineries to Address Fuel Scarcity
Senator Ifeanyi Ubah, Chairman of the Senate Committee on Petroleum (Downstream), has urged the Federal Government to prioritize the development of modular refineries as a key strategy for addressing Nigeria’s fuel scarcity challenges. Speaking at the ongoing Offshore Technology Conference in Houston, Texas, U.S., Ubah emphasized the importance of investing in modular refineries to enhance the country’s refining capacity.
“I am proposing that the government should come up with a very laudable position to stimulate the development of modular refineries that can refine crude oil within the riverine areas and use competent experts to operate them,” Senator Ubah stated. He highlighted the potential of modular refineries to contribute to Nigeria’s energy independence and called for significant investment in this sector.
Ubah emphasized the need for competition in the refining sector to drive down prices and ensure efficiency. He suggested that modular refineries could be established with investments ranging from $300 million to $500 million, with operators expected to recoup their investments within 5 to 10 years. He proposed leveraging funds from local content initiatives and other sources to support the establishment and operation of modular refineries.
Regarding government-owned refineries, Senator Ubah suggested encouraging consortia of experts to acquire and operate these facilities. He stressed the importance of efficient management and maintenance of refineries to ensure their optimal performance.
Senator Ubah also addressed the issue of gas flaring, highlighting plans to hold public hearings across nine states to gather input from various stakeholders. He expressed his commitment to addressing challenges in the oil and gas sector through legislative measures and collaboration with relevant stakeholders.
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In terms of refinery operations, Senator Ubah expressed confidence that the Port Harcourt and Warri refineries would be fully operational by the end of the year, with plans in place to achieve this target. He also indicated that the Kaduna Refinery would become operational by the end of 2025. Additionally, he highlighted the importance of the Dangote Refinery in boosting domestic fuel production once completed.
Senator Ubah reiterated his commitment to ensuring the efficient operation of refineries in Nigeria and pledged to work tirelessly to achieve set targets. He emphasized the need for regular monitoring and maintenance of refineries to ensure their sustained performance.
