Company Set to Construct $15 billion Refinery in Ondo, Compete With Dangote Refinery, Others
- BINL plans to create a Free Trade Zone and build a $15 billion refinery in Ondo State's Ilaje Local Government Area, with a daily capacity of 500,000 barrels
- The project, a joint venture with the Ondo State Government, will begin with a modular refinery producing 100,000 barrels per day, expected to be completed in 48 months
- BINL sad it is committed to community development through CSR initiatives and infrastructure, while collaborating with the Nigerian National Petroleum Company to ensure the refinery's success
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Backbone Infrastructure Nigeria Limited (BINL) has declared its intention to create a Free Trade Zone in Ondo State's Ilaje Local Government Area and construct a $15 billion refinery with a daily capacity of 500,000 barrels.
Source: Getty Images
Through a joint venture between BINL and the Ondo State Government, represented by the Ondo State Development and Investment Promotion Agency, the massive project—which is planned for the Sunshine Industrial Park in Ogboti-Eruuna and the anticipated Sunshine Free Trade Zone—will be completed.
According to a statement provided to The PUNCH, the project will be carried out in stages, starting with a modular refinery that can produce 100,000 barrels per day. Within 48 months, the first phase is expected to be finished.
Regarding the firm, initial discussions are currently taking place with the Nigerian National Petroleum Company Limited to explore a potential collaboration that would facilitate the refinery's delivery.
According to Wale Adekola, BINL's Vice President of Corporate Services, the refinery will serve both domestic and foreign markets by producing refined petroleum products for local consumption and as feedstock for domestic businesses.
“This is a game-changing industrial project that will help reduce Nigeria’s trade deficit, conserve scarce foreign exchange, and boost government revenues. At the state and local levels, we are confident that it will stimulate job creation and drive economic activity,” he said.
He pointed out that building essential supporting infrastructure, including roads, storage tanks, loading bays, terminals, and handling equipment, will be part of the refinery project.
Building infrastructure and facilities to enable commercial and industrial operations in accordance with global best practices will be part of the development of the free trade zone.
According to Adekola, the project would be supported by a thorough governance framework and adherence to all applicable social and environmental laws.
He said that in preparation for the official signing of the Memorandum of Understanding between the two sides on July 15, BINL has planned a courtesy visit to Lucky Aiyedatiwa, the governor of Ondo State, on July 14.
According to the corporation, the project would give priority to CSR efforts, such as local job quotas, education programs, and infrastructure development in host communities.
Source: UGC
“Beyond the economics, we are deeply committed to community development. Our CSR plan focuses on education, social infrastructure, and stakeholder engagement to ensure inclusive benefits and avoid potential resistance,” Adekola added.
Bola odukale said,
"We need more refineries like Dangote (those in the private sector) in Nigeria to boost petroleum production in Nigeria."
Dangote announces expansion to other countries
Legit.ng reported that Nigerian oil marketers' imports of Premium Motor Spirit, or gasoline, hit a record low in June, primarily due to a surge in production from the Dangote Petroleum Refinery, which produces 650,000 barrels per day, according to new data.
According to an Argus article citing Kpler tracking data on Tuesday, the Dangote refinery's increasing output significantly decreased demand for the product from Norway, the United Kingdom, and European Union nations—traditional exporters of refined gasoline to Nigeria.
June was the lowest volume of gasoline exports from Europe to Nigeria since tracking started, according to Kpler statistics, underscoring the growing influence of domestic refining on the fuel import profile of the nation.
Source: Legit.ng
