Construction of Abia modular refinery to begin first quarter of 2026

The Group Chief Executive Officer of HSI Energies, Mr. Ugwumba Chikezie Nwosu, has announced that construction work on the proposed 10,000 barrels-per-day modular refinery in Abia State will commence in the first quarter of 2026.

He disclosed that arrangements for equity sourcing, debt financing and other requirements have reached advanced stages.

Nwosu revealed this when he led his management team on a visit to Government House, Umuahia, to brief state officials on the project’s status. The meeting was attended by the Commissioner for Petroleum and Mineral Resources, Prof. Joel Ogbonna; Commissioner for Finance, Mr. Uwaoma Ukandu; and other aides of Governor Alex Otti.

The refinery, located within the 2,000-hectare Abia Industrial and Innovation Park (AIIP) in Owaza, Ukwa West Local Government Area, will be developed in phases. It will initially process 10,000 barrels of crude oil per day, with plans to increase capacity to 30,000 barrels daily.

According to Nwosu, the project will create significant economic benefits, including direct and indirect employment opportunities, increased Internally Generated Revenue (IGR) for Abia, and foreign direct investment.

“For each 10,000 barrels per day, about 1,000 direct jobs will be created in Abia State. We intend to scale up to 30,000 barrels per day, which will mean 3,000 direct jobs and several indirect jobs. At full capacity, the refinery will attract foreign direct investment worth about $300 million,” he said.

He added that the project will also provide training opportunities for Abians in oil refining and ensure local access to petroleum products. Nwosu commended Governor Otti for constructing the access road leading to the refinery site.

Responding, Governor Alex Otti reiterated his administration’s commitment to the timely realisation of the project, noting that the AIIP has been designed to host multiple industries in a gas-powered industrial ecosystem.

“The vast area in AIIP, Owaza, is designated for a gas-powered industrial ecosystem, including energy, logistics, housing, modular refinery, petrochemical plants, fertiliser companies and clean infrastructure,” Otti stated.

He thanked HSI Energies for choosing Abia for the investment and assured the company of the state government’s continued support.

“Thank you for bringing HSI Energies into Abia State to build a modular refinery. Of course, we are not oblivious to the time this takes. I think you’ve moved very well, and we appreciate your efforts and experience,” the governor said.