Posted by News Express | 1 August 2017 | 1,687 times
Minister of State for Petroleum Resources, Dr Ibe Kachikwu has promised adequate incentive support to the $18 billion Dangote refinery to fast-track its completion in Lagos.
While on a facility tour of the refinery situated at Lekki Free Trade Zone in Ibeju Lekki, Lagos on Monday, Kachikwu said the Federal Government would support the project through policies that would liberalise the market.
He urged Dangote to speed up completion of the refinery to come on stream before 2019, to promote effective downstream sector.
He charged the management of the company to involve tertiary institutions in its operations and build capacity among students studying oil and gas related courses in order to have some experience on refinery operations.
The Minister said that in spite of the private sector’s intervention and investment in the oil and gas sector, government still had a lot of role to play in terms of setting the right policies for a robust and investment friendly atmosphere.
He said: “The fact that the private sector is taking up some interventionist role, does not mean government will fold its hands.
“We will still have to continue to churn out policies that will help stimulate growth in the sector.
“For instance, we have to ensure that the right tariffs are set for those laying gas pipelines and other assets.”
Kachikwu commended Dangote for the project, while assuring of total support in promoting the success of the project.
“This refinery is indeed a massive and gigantic project which needs to be supported by government and investors.
“Government will support to incentify policies that will promote and attract investors to the refinery.
“I will tell my colleagues all over the world about Dangote refinery and the investment capacity.”
Kachikwu, however, commended the management for ways local communities were engaged and carried along.
He urged other companies to emulate the company.
Chairman of Dangote Group, Alhaji Aliko Dangote said that the Dangote refinery would save the country over $7.5 billion annually through import substitution.
According to him, the project would add value to the economy as all the projects would be creating about 4,000 direct and 145,000 indirect jobs.
The Dangote boss lauded the resolve of the Minister for his efforts towards ensuring availability of petroleum products and championing a comprehensive overhaul of the energy sector in Nigeria.
He said that Dangote was committed to playing its part in the efforts of the Minister and the Federal Government to comprehensively address the energy crisis in the country.
“As you are aware, we are currently building the world’s largest single line refinery and petrochemical complex and the world’s second largest urea fertiliser plant.
“The refinery will have the capacity to refine 650,000 barrels of crude oil per day, while the petrochemical plant will produce 780 KTPA Polypropylene, 500 KTPA of Polyethylene while the fertiliser project will produce 3.0 million metric tonnes per annum of urea.”
Dangote said that the company would also build the largest sub-sea pipeline infrastructure in any country in the world, with a length of 1,100 kilometre to handle three billion SCF of gas per day.
According to him, Dangote also planned to construct a 570 MW power plant in the complex.
“Gas from its pipeline will augment the natural domestic gas supply with an additional 12,000MW of power generation added to the grid from its gas system.” (NAN)
•Photo shows, L-R; Honourable Minister of State for Petroleum Resources, Dr. Ibe Kachikwu; President/CE, Dangote Industrie Limited, Aliko Dangote; and Group Executive Director, Strategy, Capital Projects & Portfolio Development, Dangote Industries Limited, Devakumar Edwin, during the Minister of State for Petroleum Resources working visit to Dangote Oil Refinery, Petrochemical and Fertilizer Projects in Lekki, Lagos on Monday.
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