Modula Refineries, Solution to Perennial Petroleum Product Shortages

Modula Refineries, Solution to Perennial Petroleum Product Shortages
Zainab Tanimu —Kaduna
The Nigerian Society of Engineers has identified the setting up of Modular refineries as the surest way to solving our problem of petroleum product shortages and that of environmental pollution caused by illegal refineries operators. The wholesome of money being spent by the federal government in cleaning up the Niger Delta axis where these illegal activities are prevalence according to experts can be directed to other areas of socio-economic needs of the people. Not only must the government be ready to chart a way forward but that the people themselves must be ready and be educated on the need for modular refineries as this would enhance the availability of quality petroleum product. Nigeria it said has the capacity, the political will and the manpower to do it.
This revelation was made in a paper presentation titled, “Impacts of Modular Refineries on Petroleum Products, Availability Price Stabilization in Nigeria” during the monthly meeting of the Nigerian Society of Engineers (NSE) Kaduna Branch. The presenter, Engineer E. A. Adebayo, immediate past Director and Chief Lecturer, Department of Chemical Engineering, College of Engineering, Kaduna Polytechnic said Nigeria’s refining capacity is currently insufficient to meet domestic demand thereby forcing the country to import Petroleum products. It is estimated that demand and consumption of petroleum in Nigeria grows at a rate of 12.8% annually.
“We have conventional refinery for decade and it has not solve the nation’s problem despite the huge amount of money spent by government over the years on turnaround maintenance. The functional states of the refineries remain seriously impaired. Poor management and lack of regular maintenance contribute to the current operating capacity of around 214,000 bbl. /d.

“ History has shown that setting up major refineries in an environment like ours is not an easy task to accomplish. In 2008, 18 licenses were granted only one took off and it is producing only diesel. Modular refinery has been identified as a means by which we can solve our problem of petroleum product shortages and that of the illegal refineries that are polluting the environment.
“The money required to build one regular fully integrated refinery can build 50 to 60 modular refineries. The risk factor is there but it is more advantageous to go for modular refinery. Modular refineries in Nigeria will increase local refining capacity, sustain steady supply and reduce the importation of petroleum products into the country. A lot of money being spent presently is to argument the importation of petroleum products which is in foreign exchange. Consequently, the pressure on our foreign reserves will be drastically reduced, while the value of the Naira will ultimately receive a huge boost. This would help in creating jobs for people while the activities of vandals would reduce drastically

The Chief Lecturer stressed that the way out is for Government to establish modular refineries.
Modular refineries are small and simple separating units fabricated and brought to site to produce our basic needs like kerosene, Diesel and fuel oil. Though not comparable with fully integrated refineries but are economical in terms of cost implication and also has the advantage of being designed and erected between the period of 2 to 3 months and can start production.
It can operate independently or you can create another unit and use pipe to connect it.
They are best suited for remote locations. And because it is movable, when an oil well is no longer viable, if it gets dried or not economical, it is moved to another location of choice. Where there are stranded fields, modular refinery can be installed instead of laying pipes to storage and for export. The products produced though are limited.
Investment in Modular refineries the paper further explained would not only help in eliminating unsafe illegal refineries which are dangerous to our environment but would also help in addressing the subsidy on petroleum products. The noble concept could help transform the Niger Delta Region.as legitimizing it would pave way for small investors who may not have the capital to build big refineries. It will organize the local refineries operators into companies and encourage the people of the region to invest in local refining according to the level of their capital under a controlled and regulated framework. This would encourage and promote entrepreneurship.
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The idea of modular refineries is increasingly becoming popular in Africa. Some other African countries have already set up smaller refineries to complement the regular or conventional ones. Mr. President’s move to establishing modular refineries therefore is seen as a step in the right direction.
Where there are stranded fields, modular refinery can be installed instead of laying pipes to storage and for export.
The table below shows countries that have keyed into the project.
Senegal – 27,000bpd Cameroon – 42,600bpd Congo – 21,000bpd Niger Republic – 20,000bpd Chad – 20,000bpd Zambia – 34,000bpd Gabon – 25,000bpd.
Government must be very serious and determine to finance and grantee the bank loans that will be required for modular refinery and create an enabling environment not that of militancy approach but a dialogue approach to the people operating the illegal refineries so that we will succeed
Incentives that would boost modular refining operations in Nigeria include guaranteeing of 100 per cent crude oil feedstock for all refiners for at least 10 years; discounted price of crude oil for domestic consumption; a minimum of 60 days credit for each cargo of crude oil
Recommended was a total of 15 Modular refineries of 20,000bpd as against the federal government’s plan to establish 65 modular refineries to solve the perennial petroleum products shortages. Reason for recommending 15 being that it would create a serious environmental issue
The refinery locations and land acquisition are major issues which only government interference would be sought. Bureaucratic bottlenecks, infrastructural deficit in the host communities needs to be addressed.
Adebayo informed the NSE of the federal government’s call for collaboration in order to make it work. The federal government has invited the Nigerian Society of Engineers to join hand with the presidential committee on hydro-carbon processing that has been set up. Among the mandate given is to develop a Nigerian operated designed fabricated modular refinery”.

The Vice Chairman of the Nigerian Society of Engineers, Engineer Nasiru Umar Chawai who stood in for the Chairman, Engineer Dr. Abdul-Rasheed Babalola said the problem surrounding petroleum shortage in Nigeria is not technical but political because according to him, “we the engineers we see the problem and we have the solution but to give the free hand to solve it, that is where the problem lies.
Government should patronize the engineers so that we see how we can solve the problem locally. We do not have to bring in an outsider to solve it.
Even if you go for the modular refineries without involving the professionals, we are still going back to the statuesque. This is why we want the government to involve the engineers in anything that has to do with engineering profession. We are not doing it for the engineers alone but for the nation”.
We have the technical know-how but the political will and polices problem is lacking”.
Engr. O C Ochu said, Niger Delta is where we have the off shoots of illegal refineries which are causing a lot of damage to the environment. Establishing modular refineries would put the activities of illegal refineries activities in check. Incorporated them under an outfit which would be regulated and monitored by an authority he said would save our environment from being polluted.
. A member of the NSE, Mrs. Hadiza Ajoge giving her contribution stated that the fact that Engineering is men dominated profession notwithstanding, women are making their impact “It has not been easy but with self-will and focus we can do what the men are doing”.
As for modular refineries, we are ripe for it. The earlier we started the better for Nigeria. I do not want to praise Mr. President’ administration so that it will not look as if l am being partial but with the caliber of people at the helm of affairs at the national level, l am of the opinion that the setting up of modular refineries is achievable and a durable venture.