The BUA refinery capacity is 200,000 bpd
BUA Group has chosen a French high-tech firm, Axens for its multibillion-dollar 200,000 barrel per day (bpd) refinery and petrochemicals plant to be located in Akwa-Ibom State.
The multi-billion-dollar BUA refinery, according to a statement by Axens on Tuesday, “aims at producing Euro-V fuels and Polypropylene for the domestic and regional market”.
The French technology provider Axens was selected by BUA Group after a comprehensive process, for its advanced technology licenses, basic engineering, catalysts & adsorbents, proprietary equipment, training and technical services, the statement said.
“Once completed, this RFCC-based complex will produce high-quality gasoline, diesel, jet fuel meeting Euro-V specifications for the Nigerian market and the larger region. In addition, it will produce propylene, an essential component for the petrochemical industry used in polypropylene-based plastics and packaging. This large complex will help in reducing Nigeria’s dependence on imported fuels and petrochemicals,” BUA Group Chairman and CEO Abdul Samad Rabiu said in the statement.
On his part, Axens’ Chairman and CEO Jean Sentenac said: “We are delighted to be part of this strategic project providing the most advanced technologies on the market that are energy-efficient and ensure the production of high-quality fuels and petrochemical intermediates. This state-of-the-art integrated complex will allow BUA Group to develop its refining and petrochemical capabilities in Nigeria and produce highly valuable products for the domestic market. It is a great pleasure and pride to partner with them to concur to develop the Nigerian economy and ensure the success of this strategic state of the art project”.
Although it is in a much smaller scale compared to the 650,000bpd Dangote Refinery, this move pitches BUA against Africa’s richest man whose refinery has reached advanced stages and production is expected to commence no later than 2021.
However, the ultimate winner is the Nigerian government which had become desperate to end decades of fuel importation in the face of the unstable oil market and dwindling revenue, making it in increasingly difficult to sustain an expensive oil subsidy regime.