News on Capt.Iheanacho’s N25.8bn Lagos Refinery project went viral after it was featured here on IMO STATE BLOG yesterday.
Our concerns did not go unnoticed as the Former Interior Minister, Captain Emmanuel Iheanacho issued a response last night. The Imo state Governorship candidate of the All Progressives Grand Alliance party (APGA) in the last elections provided an insight into the factors which determined the investment location decision.
Here’s what he had to say:
I am glad you guys got around talking about my refinery project. Perharps i can give you some additional heads up on the project and the unique factors which determine its location.
I have a license to develop a 20,000 bpd modular refinery at a specific coastal location in Lagos state. The refinery is one of a number of marine infrastructure development projects which i currently have in conception.
Were it possible to locate some of these projects in Imo, i would have gladly done so but unfortunately, due to the marine specific nature of the contemplated developments, non can be sited in Imo. As a general rule refineries are usually sited in coastal locations because of the need to facilitate the supply of crude feedstock to the refinery by supply tanker vessels.
Refined fractions are also evacuated from from the refinery by sea. Sadly, Imo state does not have a seaport or other maritime infrastructure that could serve as a basis for a decision to bring these investments home.
In some cases, a refinery may be built in the hinterland, away from the coast. This may occur where the investor has an ownership interest in a marginal field from where they can source the feedstock . They would also need to have a number of flow stations in close proximity to the field through which they would have to reprocess any naphta through reinjection into the crude stream. Unfortunately, i don’t own a marginal field and cannot therefore consider building a refinery in the hinterland.
I hope i have given our people an insight into the factors which determined the investment location decision. Please get our people to pray for our success. They would derive great benefits from the programme if our plans are ultimately successful.
Captain Emmanuel Iheanacho