Waltersmith Refining and Petrochemical Company Limited thursday disclosed that it has signed a memorandum of understanding (MoU) with Peiyang Chemical Equiment Company Limited of Tianjin, China to build a new Refinery at its it Imo State facility.
This deal is expected to increase Waltersmith’s daily refining capacity to 30,000 barrels of oil per day.
The company which had commenced construction of its 5,000 barrel per day (bpd) modular refinery said the new agreement with the Chinese firm would build a new refinery and support its goal of producing petrol, aviation fuel and other by-products at the facility.
Commenting on the partnership, the Chairman/Chief Executive officer Waltersmith Refining and Petrochemical Company, Mr. Abdulrazaq Isa said: “The MoU is about expanding the capacity of our modular refinery which is currently under construction by 25,000 bpd to produce other products beyond what the modular refinery is capable of doing meaning we can now produce premium motor spirit (PMS) and aviation fuel.
“This MoU is basically to undertake the project development work which would entail a feasibility study of the proposed expansion of to 25,000bpd. Then we would proceed to do the detailed engineering design for the expanded facility and some other associated studies.
“We would work jointly with the Chinese to obtain the regulatory approval for the proposed capacity. Once that is done, we can now close the financing and then go into construction.”
Furthermore, he added: “We believe that by the time we conclude the development, we would now become a full-blown refinery.”
Also, on what the Chinese firm is bringing to the table, Isa said: “They have the technology and will be involved in project debt financing, turnkey construction and operation of the plant. But it is ultimately going to be 100perecnt owned by Waltersmith and it co-venturers.
“The new facility is going to be 25,000bpd, taking our total capacity to 30,000bpd.”