IPMAN Seeks $10bn for Refinery Project

The Independent Petroleum Marketers Association of Nigeria (IPMAN) is set to shop for a credit facility to establish its $10 billion refinery.

The move is sequel to the recent adjustments in the market from the bulk suppliers, Dangote Petroleum Refinery and Petrochemicals (DPRP).

This year, the 650,000barrels per day facility has altered the prices thrice, plunging the marketers to pain and gain.

While the change in crude oil, the major components in the price template, is largely blameable, the vulnerability has unsettled the marketers who bear the shock, losses and uncertainty.

Speaking with the IPMAN National President, Alhaji Abubakar Maigandi on phone yesterday, he said the easiest way out of the volatility is for PIMAN to build and operate their own refinery in-country.

He described financial constraint as the major snag inhibiting the take- off of the 300bpd plant.

According to him, the plant, IPMAN Refinery and Petrochemicals Company’s proposed site is in Akwa Ibom State.

Maigandi also said the association will present the proposal and request for credit facility to President Bola Tinubu in March.

He also revealed that once the association secures the loan, which may attract equity, the company can bring the project to completion within a year.

Asked whether the marketers will remain at the mercy of Dangote forever, Maigandi said: “The Independent marketers are to seek support of the government to build their refinery.

“We have already perfected our proposal that we are presenting to the President in March.

“The plant is named IPMAN Refinery and Petrochemicals Company. It is sited in Akwa Ibom State. It has 300bpd capacity. It will cost us $10 billion to bring it to completion in one year.”

Since the Nigerian National Petroleum Company Limited (NNPCL) ceded the status of being the sole importer and supplier of the PMS upon the removal of fuel subsidy, its Port Harcourt Refinery and Petrochemicals and the Warri Refinery Petrochemicals have been shut down.

Aside from the DPRP which the latest Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed to supply 40.1million litres of the 63 ml domestic petrol, the 23ml balance is sourced from importation because domestic modular refineries have no capacity for turning out the PMS.

The IPMAN boss also said the independent marketers have started taking delivery of the Dangote petrol.

He however explained that since the refinery is yet to make good its promise of free direct delivery of the product to the marketers, they rely on MRS for the fuel.

According to him, since the marketers still incur transportation cost from conveying the product from MRS to their retail outlets, it is impossible for them to sell it at the same pump price with MRS.

“We cannot sell at the same pump price as MRS because Dangote Refinery is not delivering the petrol to us directly as planned.

“We have been getting it indirectly from MRS and we still spend money to take it to our stations so we can’t compete with MRS, which is our supplier,” he said.