The Federal Government, yesterday, declared that it would no longer allow the proliferation of modular refineries across the Niger Delta region.
Recall that government had a few weeks ago said it would encourage the setting up of modular crude oil refineries in oil-producing communities across the Niger Delta.
It also disclosed plans to legalise illegal crude oil refineries and inculcate them into the modular refineries initiative.
But speaking in Abuja, Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said having such refineries scattered across the length and breadth of the Niger Delta would heighten environmental degradation, worsen gas flaring and increase the problems of the region.
The Minister was speaking at the presentation of the report of the New Nigerian Oil and Gas Sector Governance Policy Consultation Workshop held in Aberdeen, Scotland, by Nigerians in Diaspora Organisation, Europe, United Kingdom and North Aberdeen.
Kachikwu was represented by his Senior Technical Adviser on Fiscals, Mr. Timothy Okon.
He said that government was considering a situation where modular refineries would be located only in areas where its products would be easily evacuated and where getting feedstock to them would not be cumbersome.
According to Kachikwu, the Federal Government was commissioning a broad study that would lead to the development of an intelligent plan for the construction of modular refineries in the region.
He said, “It is important to clear a misconception, especially as it has to do with modular refineries.
“Setting up smaller modular refineries in so many places in the Niger Delta would worsen gas flares in the region and also bring about environmental challenges.
“It is critical to develop an integrated approach and plan to modular refineries construction in the Niger Delta, ensure that they are properly optimized and are not scattered everywhere. “If the refineries are scattered everywhere they would not provide significant economic benefits to the country.”
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