On the back of ease of doing business reforms, by the Governor Godwin Obaseki-led administration, Duport Midstream Company Limited (DMCL) has announced that the newly built energy park in Egbokor, Orhionmwon Local Government Area of Edo State will kick-start operations in October 2021.
The Energy Park is the second industrial refinery facility in the state, different from the Edo Modular Refinery, which has been completed and set to receive feedstock from Escravos line in August.
The Park, which is the first of its kind in West Africa, is the only park with a refinery operation, gas processing plant and power plant sharing the same resources.
Powered by Platform Capital, the energy park has a 10,000 barrel-per-day refining capacity, a 50 megawatts plant capacity and a 60 million scf gas processing plant.
According to the Managing Director of Duport Midstream, Akintoye Akindele, “We realized that the best way to solve our energy problem is by making it last mile, where people can access it easily, thus making the cost lesser and the business scalable.”
“We decided to build an energy park that has refinery operation, a gas operation that does CNG with a potential LNG, and a power plant with all sharing the same resources,” Akindele said.
Akindele said the park will contribute to the availability of petroleum products, utilization of the country’s abundant gas resources and power generation for industries.
Noting that operations in the energy park facility will kick start in October 2021, the Managing Director stated, “Come October 1, 2021, the first energy park with a gas refinery, power and modular energy goes live, first time in the world.”
He explained that the energy park is 70 percent local content, as most of its parts were built locally by contractors, apart from the compressors and refinery done abroad.
Akindele disclosed that the park will commence operation with a 2,500 barrels per day refining, a five megawatts plant, and a 40 million scf gas processing from the installed capacities of each operation.
“We can produce and sell below the cost they ship abroad. It means kerosene and diesel can be cheaper.
“We plan to build all these small modular parks in strategic areas where trucks can drive-in and buy, this helps to cut about 30 percent of the cost,” he said.
The Nigerian Content Development Board (NCDMB) invested $15 million to acquire an equity stake in Duport Mid-stream for the development of the park. Duport Midstream is among the indigenous oil companies that were recently awarded one of the 57 marginal oil fields in the country.
This, according to the organisation, will enable them to further reduce their cost as they would be getting their gas and crude directly from the fields.
“We bid for the marginal field to process locally. Our game plan is to have refineries and gas plants. Get the gas to power and put electricity in homes and industries,” he said.