Siting modular refineries in oil, gas free zones will aid investment – Exporters

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The Association of Nigerian Exporters (ANE), has suggested that siting modular refineries in the oil and gas free zones would cut investment costs, Premium Times reports.

The president of ANE, Sunny Udoh, gave the suggestion in Abuja during his meeting with the managing director of the Oil and Gas Free Zones Authority (OGFZA), Okon Umana. Mr. Udoh explained that in view of the regime of incentives that exempts free zone enterprises from import duties and other forms of taxation, establishing modular refineries in the country’s oil and gas free zones would cut the cost of investment significantly.

He said the modular refineries proposal should go with the establishment of oil and gas free zones in all oil producing states as a means of diversifying the country’s economy. He said the federal government should allow the OGFZA to lead the effort to establish the modular refineries in the oil producing areas to replace the “illegal refineries” in the region. He said such refineries should be modelled after the U.S. export-oriented refineries to produce special products such as aviation fuel and industrial raw materials.