Peiyang Chemical Corp. commits 70% financing for Edo Modular Refinery

On January 10, 2018, the Edo State Government signed a memorandum of understanding with a consortium of Chinese companies for the construction of a modular refinery in Edo State. The consortium consisted of Peiyang Chemical Equipment Company of China (PCC), Sinopec International Petroleum Service Corporation (SIPS) (subsidiary of Sinopec, a state owned enterprise) and African Infrastructure Partners (AIP), a Nigerian company. The MOU signing occured at SINOPEC headquarters in Beijing, China, and was witnessed by officials of the Nigerian Embassy, as well as the Governor of Edo State, Godwin Obaseki. At an unkown point a joint venture between PCC and AIP, known as AIPCC Energy Limited took ownership of the project. The PCC agreed to finance up to 70% of the refinery's building costs. According to the Orient Energy Review, the Edo State Government also committed financing with a N700 million loan. The project was to have two construction phases; phase 1 consisting of 500bpd demonstration refinery and phase 2 consisting of a 5,000bpd capacity refinery. According to the Energy Mix Report, the refinery was completed in August 2020 at a cost of $10.2 million. According to the AIPCC full operation began in March 2021. It produces diesel, Naptha and fuel oil. Another MOU related to the project was signed at the Forum on China-Africa Cooperation Summit in September 2018. As part of the deal, Tianjin University (controlling stakeholder of PCC) agreed to help nearby Ambrose Alli University develop a Department of Chemical Engineering.

Additional details

Unsure if foreign direct investment or joint venture - at some point a joint venture came into possession of the project but unknown when

Number of official sources

5

Number of total sources

16