By Akanimo Sampson
The Buhari administration has awarded Tecnimont SPA, an international leader in large-scale contracting for the EPC sectors and a subsidiary of Maire Tecnimont SPA, a contract to carry out the rehabilitation of the Port Harcourt refining complex in River State.
Featuring a 60,000-b/sd hydro skimming refinery and 150,000-b/sd full-conversion refinery, the Port Harcourt complex is owned by Port Harcourt Refining Co. Ltd. (PHRC), a subsidiary of Nigerian National Petroleum Corporation (NNPC).
The overall contract’s value is $ 1.5billion according to Maire Tecnimont S.p., the Italy-based company at the head of an international industrial group specialised in the transformation of natural resources particularly plant engineering in downstream oil & gas.
As part of the contract, Tecnimont SPA will deliver engineering, procurement, and construction (EPC) activities for the full rehabilitation project, which aims to restore the complex to a minimum of 90% of its nameplate capacity.
The project will be executed in phases over 24 to 32 months, with the final stage expected to be completed by the end of the year 2024, or 44 months from the date the contract was awarded.
NNPC’s Group Managing Director, Mele Kyari, assured that the oil corporation will continue to move forward with the presidential mandate to fix the country’s federally owned refineries, which will include future works at NNPC subsidiaries Warri Refining & Petrochemcial Co. Ltd.’s 125,000-b/sd refinery in Delta state, and Kaduna Refining & Petrochemical Co. Ltd.’s 110,000-b/sd refinery in Kaduna state.
In the mean time, an 18km gas pipeline system in Ogun State, Nigeria, has been commissioned by the Sagamu Gas Distribution Zone (SGDZ) development, a joint venture between Transit Gas Nigeria Limited (“TGNL”) and Nigerian Gas Marketing Company Limited (“NGMC”).
The NGMC/TGNL JV otherwise the SGDZ commenced operations in 2019 by delivering gas to growing industrial users including Apple & Pears Limited, West Africa Soy Industries Limited, Uraga Power Solutions Limited, Emzor Pharmaceuticals Industries Limited, and Coleman Technical Industries Limited.
TGNL is a subsidiary of the gas distribution services provider, Axxela Limited (Axxela) while NGMC is a subsidiary of the Nigerian National Petroleum Corporation.
The 18km gas pipeline infrastructure, with a capacity of 150 million standard cubic feet per day, connects Ibefun to the Rite Foods Limited agro-industrial plant in Ososa.
On the one hand, this new installation will allow stakeholders to monetise gas resources while providing cleaner and more profitable fuel for energy production and on the other hand reduce the transport tariff. This should stimulate industrial growth and the economic empowerment of communities.
First gas has already been delivered through this pipeline to the manufacturer of Bigi Drinks, Rite and Bigi Sausages, and Fearless Energy Drinks. With consistent gas supply, the fast-moving consumer goods company is expected to achieve significant energy cost-savings.
Speaking on the project commissioning, Axxela Chief Executive Officer, Mr. Bolaji Osunsanya highlighted the company’s commitment to growth and industrialisation saying, “this venture is in firm alignment with our near-to-long term market expansion strategy, and it emphasizes our push to broaden our asset portfolio and strengthen our market play within the gas sector.”
On the other hand NGMC Managing Director, Faruk Usman, an engineer, said that the company is delighted to pioneer and implement initiatives with private players, a clear indication of its willingness to collaborate and ensure the success of Nigeria’s Gas Expansion Programme.
