By Chioma Obinagwam
Financial Planner and Economic Strategy Consultant, Kalu Aja, has suggested that government should encourage the establishment of Nano modular refinery in Nigeria.
Confiance News gathered from a post he made on his official X handle on Wednesday.
A modular refinery is a mini refinery capable of processing between 1,000 and 40,000 barrels per day (BpD) of crude oil. These compact facilities can handle both light and heavy crude oil within an API gravity range of 35°–50°. A nano modular refinery refers to a petroleum refining facility that incorporates nanotechnology (Nanotechnology is the understanding and control of matter at the nanoscale) to enhance its processes.
He likened it to having a garden of food crops in one’s backyard.
He said: “Grow your food in your backyard? I agree 100%. Why can’t we also refine crude oil to PMS in our backyard?
Why not license those nano modular refineries that are polluting the environment?
Give them modern equipment and access to marginal oilfields.
You take away the criminality, create jobs and save the environment.”
Aja’s post, however, sparked reactions as X users made several remarks relating to the possibility the realization of nano refineries.
Sam-vivour said: “Well, these nano refiners even when licensed will not be willing to buy crude at international or local set price. The crude used in this illegal refineries are stolen & they will never want to leave that act.”
Reacting, Aja said:”How do you know they are not willing?”
Tochukwu Mama said: “If they are willing to buy crude oil why will they risk stealing it, imagine Kalu Aja stealing candy from Roban stores, does that make sense?”
Arguing, the financial planner said: “They are forced steal it because its not legally theirs and there is no pathway for them to get even a drop.
If you sell to them, they will legally pay for it and refine and make a nice margin
Socrates doubts the viability of the project, he said: “Indeed. Quick question: if this is the case, can a bi-focal market model impact fuel prices in Nigeria?
Perhaps, dedicating an oil field to the service of only local refiners with prices fixed in naira according to the whims and caprices of local demand and supply?”
“While maintaining foreign crude obligation in USD, what is the impact of NNPC selling crude to local refiners in naira at a price lower than the international price – call it a dual price structure.
Certainly, they’d operate at a loss but at what impact?,” Socrates continued.
Reacting to Socrates concerns, Aja said,”Paying in Naira means subsidy. Nothing wrong with that.”
Corroborating, Aja’s point, Obioma Osuagwu said: “Simply call it a subsidy for local dealers.”
Leave a comment