The Nigerian National Petroleum Corporation (NNPC) on Tuesday inaugurated four refurbished petrol storage tanks at Monsinmi depot in Ogun State to ease product distribution and operational constraint.
The Group Managing Director of the corporation, Dr Maikanti Baru, said that the project involves dismantling and reconstruction of tank 13 and the rehabilitation of tank 11, 12 and 22.
Baru said this was relevant in order to restore the strategic oil and gas infrastructure.
He recalled that Mosinmi depot was constructed in 1978 for storage and distribution of petroleum products to the western part of the country.
“Unfortunately, tank 13 was gutted by fire in 1997 while tank 11, 12 and 22 have been in use in the last 23 years.
“Their respective floating roofs collapsed at different times in 2001 and rendered them unserviceable.
“Non-usage of theses decrepit tanks imposed operational constraint to product storage and distribution in the Mosinmi area.
“It in turn negatively impacted the turn-around of product vessels at Atlas Cove jetty with concomitant huge demurrage charges to the corporation,” he said.
The GMD said that the reconstruction and rehabilitation of the tanks became necessary to restore the operational capacity of Mosinmi depot and ease product distribution across the western part of the country.
He said that the rehabilitation was carried out and completed by Adano Engineering Company on September, 2011 in line with the contract agreement.
He said that the project was completed on scheduled despite the challenges posed by community restiveness, change in tariff by Nigeria Custom Service with resultant unforeseen delays and increases in duties.
“The project has come to restored the original combined storage of 87.70 million litres for the four tanks, which has also increased by 220,000 litres.
“This combined storage capacity represents over 54 per cent of the total storage capacity for petrol at Mosinmi depot and has significantly enhanced storage capacity nationwide,’’ Baru said.
Also speaking at the inauguration, the Group General Manger, Engineering and Technology Division of NNPC, Mr Farouk Sa’id said that the project was awarded to indigenous local engineering and was satisfactorily completed.
He lauded the Federal Government initiative towards empowering indigenous companies to strive in the engineering and oil and gas industry.