Abia State is poised for a significant economic boost with the planned construction of a modular refinery within the Abia Industrial and Innovation Park (AIIP) in Owaza. Governor Alex Otti has reaffirmed his administration’s commitment to facilitating the timely realization of this project, spearheaded by HSI Energies Group. This venture holds immense promise for the state, projected to generate substantial employment opportunities, augment internally generated revenue, and attract significant foreign direct investment. The governor emphasized his administration’s focus on creating a conducive business environment, highlighting the AIIP’s vast potential to accommodate a wide range of industries and contribute to Abia’s economic diversification.
The proposed modular refinery, situated within the expansive 2000-hectare AIIP, is envisioned as a catalyst for a comprehensive gas-powered industrial ecosystem. This ecosystem is designed to encompass various sectors, including energy production, logistics, housing, petrochemical plants, fertilizer production, and clean infrastructure development. The refinery itself is expected to be developed in phases, starting with a capacity of 10,000 barrels per day, with the potential for expansion to 30,000 barrels per day in the future. This phased approach allows for strategic growth, ensuring sustainable development and the ability to effectively source the necessary crude oil for refining operations.
Governor Otti expressed his appreciation for HSI Energies’ decision to locate the refinery in Abia State, recognizing the extensive preliminary work already undertaken by the company. He acknowledged the complexities and time involved in such projects and commended the company’s progress, highlighting their experience and expertise in the field. The governor’s commitment underscores the importance of this project to the state’s economic future and his administration’s proactive approach to fostering industrial development.
Mr. Ugwumba Okezie Nwosu, Group CEO of HSI Energies, provided an update on the refinery’s development, indicating significant progress in areas such as equity sourcing and debt financing. He emphasized the project’s potential to transform Abia’s socio-economic landscape, creating numerous direct and indirect employment opportunities. Beyond job creation, the refinery is projected to significantly contribute to the state’s internally generated revenue, with an estimated $68 million per annum for each 10,000 barrels per day of refining capacity. Further, the project is expected to attract substantial foreign direct investment, estimated at $300 million upon reaching the 30,000 barrels per day capacity.
The impact of the refinery extends beyond purely economic benefits. Mr. Nwosu highlighted the potential for training opportunities for Abians in the refining, oil, and gas sectors, fostering skills development and local expertise. Furthermore, the local availability of petroleum products is expected to contribute to price stability and accessibility within the state. The refinery is thus positioned not only as an economic engine but also as a driver of human capital development and improved access to essential resources.
The meeting between Governor Otti and the HSI Energies management team demonstrated a shared commitment to realizing this transformative project. With construction slated to commence in the first quarter of 2026, the modular refinery stands as a testament to the proactive efforts of the Abia State government to attract investment, create jobs, and diversify the state’s economy. The presence of key government officials, including the Commissioners for Petroleum and Mineral Resources and Finance, further underscores the importance attached to this project and the collaborative approach adopted to ensure its successful implementation. The refinery project is a beacon of hope for Abia State, promising a brighter future driven by industrial growth, job creation, and increased revenue generation.
