The U.S Trade and Development Agency, USTDA, has awarded a $116 million grant to Eko Petrochemical & Refining Co. Ltd for a 20, 000 barrels per day modular refinery.
A statement by the company said the fund is for a feasibility study to recommend technologies and develop an implementation plan for the proposed refinery to be built on Tomaro Island in Lagos.
Upon completion, the feasibility study will give detailed engineering design and technical analyses required to grow the project, USTDA disclosed.
EPRC has already selected VFuels LLC, Houston, to carry out the study, the USTDA said.
The statement also disclosed EPRC has already completed the front-end engineering design and the environmental impact assessment studies.
It also said for the proposed $116-million modular facility, the project will require a total cash investment of about $250 million.
Speaking on the development in a separate release, EPRC’s Chairman, Emmanuel Ihenacho said the $250m will be raised through borrowing, equity investment, and through investors.
EPRC was one of the 25 private investor’s issued licenses by the Department of Petroleum Resources (DPR) in 2015.