Investors in modular refineries have begun discussions with the African Export-Import Bank to gain access to a portion of the bank’s $18 billion fund for refinery expansion in Nigeria and other African countries, according to reports on Tuesday.
Operators in the modular refining industry revealed that this came after the bank successfully provided financial help to the $19 billion Dangote Petroleum Refinery, which is now producing refined petroleum products both domestically and for export, according to The Punch.
Clairgold Refinery and Shinjin Petro Chemicals have met with Afreximbank officials to discuss funding for the building of plants in Nigeria.
However, the modular refiners expressed worries about the feedstock for the facilities, which they claimed was stated as part of the guarantees necessary by the financial institution.
The operators, who spoke under the aegis of the Crude Oil Refinery Owners Association of Nigeria, applauded Afreximbank for its support to Dangote Petroleum Refinery throughout the construction stage of the plant.
Modular refineries are simpler refineries that require far less capital investment than traditional full-scale refineries.
Commenting, the Publicity Secretary, CORAN, Eche Idoko, said discussions were ongoing, stating “Some of us are already talking with Afreximbank, but none of the modular refineries has been financed by the bank yet. But I know that a number of refineries are talking with Afreximbank.
“Shinjin Petro Chemicals, for instance, is building a 3,000 barrels per day plant and is talking with the bank. Also, Clairgold Modular Refineries is talking with Afreximbank and BOI (Bank of Industry), and there are quite a few others speaking with the bank as well. However, none of the modular refineries have been financed yet by the bank.”
Recall that following the successful financing of the Dangote refinery, Afreximbank offered to support the development of more refineries in Nigeria and other African countries.
It was earlier reported on June 14, 2024, that the African Export-Import Bank had offered a total of $18 billion to assist the development of refineries across Africa following its successful backing of the Dangote refinery in Nigeria.
The bank declared that its strategic goal was to ensure that 50% of the continent’s crude oil production was refined in Africa.
