Nigeria, Niger Republic sign pact on Katsina refinery
The Federal Government yesterday signed a Memorandum of Understanding (MoU) with the Nigerien Government for the establishment of a refinery and hydrocarbon pipeline in Katsina State.
President Muhammadu Buhari and his Nigerien counterpart, Mahamadou Issoufou witnessed the signing of the MoU by ministers of Petroleum resources of the two countries Villa.
Minister of State for Petroleum Resources, Dr Ibe Kachikwu and the Nigerien Minister of Energy and Oil, Foumakoye Gado signed the MoU for Nigeria and Niger Republic respectively.
The refinery when constructed will produce between 100,000 to 150,000 barrels per day, according to Kachikwu.
The occasion witnessed the inauguration of a Steering at the presidential Committee chaired by Kachikwu and Gado as the alternate chair to provide strategic leadership, direction and governance oversight for the project.
Also, a technical committee led by Nigeria’s Engineer Rabiu Suleiman supported by the Director General of Hydrocarbon of Niger was inaugurated to develop the implementation roadmap and strategy for both the refinery and pipeline projects.
Kachikwu said the capacity will depend Nigerien crude.
China National Petroleum Corp (CNPC) ramped up Niger’s crude output to nearly 70,000 barrels per day in 2018 from under 50,000 barrels, according to Niger’s statistic agency Institut National de la Statistique du Niger.
The minister said the landlocked West African country currently produces “enough to support about 6070,000 barrels per day but lots of field that have been capped on available will be opened (with the coming of the new refinery.)” All of Niger’s current crude output is processed at the CNPC-operated Soraz refinery.
A director of blakoil energy limited, one of the investors for the project, Ibrahim Zakari said his company was ready to invest $2bn in the project.
“We are one of the investors and we are willing to invest $2bn dollars. The funds are coming from abroad, US, Canada, India and the middle east,” he said.