As part of its strategy to ensure optimal value extraction across its diversified investments along the energy value chain, Oando PLC, Nigeria’s leading integrated energy solutions provider, has flagged off the development of an ultramodern refined petroleum products import Terminal, at the Lagos State Lekki Free Trade Zone (LFTZ).
Pursuant to this, Oando has commissioned the Front End Engineering Design (FEED) of the terminal scheduled to be completed by the third quarter of 2009, whilst the entire project is expected to be commissioned in the first quarter of 2012.
The 210,000 MT capacity terminal is conceptualised to be best-in-class and the largest purpose built product terminal in the sub-Saharan Africa dispatching over 500 trucks per day in what is set to revolutionise petroleum products distribution in Nigeria.
This investment is a precursor and in synergy with Oando’s plan to develop a Greenfield Refinery Project in the same location. Already, a comprehensive 4-month detailed bankable feasibility study for an ultra-modern refinery has been concluded.
Commenting on the project, Mr. Ayo Ajose-Adeogun, CEO Oando Refinery and Terminals said, “This project will have a direct impact on the downstream sector as it will radically reduce the traffic to Apapa port, which was originally built to handle only 10% of Nigeria’s energy import requirement as against the 90% it does today. It will also increase Major Marketers throughput by bridging the huge supply gap.”
“The Lekki Terminal Project will have a Single Point Mooring (SPM) facility located about 7km offshore, which will support the berthing of 80,000 deadweight tonnage (dwt) vessels for the first time in West Africa, thereby significantly providing unprecedented cost efficiencies”. He added.
Also commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said, “This project will be the benchmark for product reception terminals in sub-Saharan Africa that will once again attest to our superior execution capabilities. We project strong early cash flow that will provide immediate shareholder value and the financial platform for the development of our ultra-modern refinery in the same location.”
