Nigeria’s domestic refinery has increased its capacity from 445,000 barrels per day (bpd) to 462,000 bpd. This is due to the completion of the three new refineries, which has yielded a 3.8% increase.
Nigeria’s four domestic refineries, in Port Harcourt, Rivers State, Warri, Delta State and Kaduna, Kaduna State, had for several years been stagnated at 445,000 bpd. However, this new domestic refining capacity is a step in the right direction towards meeting the demand for black gold domestically.
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Furthermore, the latest report by the Department of Petroleum Resources (DPR) has the list of valid domestic refinery licenses.
The Department of Petroleum Resources, DPR, stated that the completion of work by Waltersmith Refining and Petrochemical Company Limited, OPAC Refineries Limited and Niger Delta Petroleum Resources (Train2), which have 5,000 bpd, 7,000 bpd, and 5,000 bpd respectively, would increase the nation’s capacity by 17,000 bpd, bringing the total to 462,000 bpd.
However, the report did not disclose when the new plants, located in Ibegwe, Imo State; Umuseti, Delta State, and Ogbele, Rivers States, would come on stream.
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Engr. Simbi Wabote, Executive Secretary, Nigeria Content Development Monitoring Board (NCDMB), specifically referred to Waltersmith. He said: “The Waltersmith Modular Refinery is a 5,000bpd facility with total annual product volume of 271 million litres and daily output of about 300,000liters of diesel (AGO), over 50,000 litres of kerosene (DPK) and 400,000 litres of Heavy Fuel Oil (HFO).
These numbers are significant in plugging some of the gaps in local refining. This means a secured source of undiluted petroleum products for businesses in the East and its environs.
Within a period of two years of our partnership, we have come to appreciate the growth plans of this independent oil producer, including phase 2 of this project, which has a capacity of 30,000 bpd.
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We had targeted the commissioning of the refinery in May 2020 but this was not possible due to the COVID-19 pandemic.
As a key partner in the establishment of the modular refinery, we plan to invite dignitaries within the limits of COVID-19 protocols to witness this remarkable event, led by the Minister of State for Petroleum Resources, Chief Timipre Sylva.
We will use the event to showcase what can be realized when there is synergy between government and the private sector”.
Engr. Wabote, who confirmed that the plant was ready, said: “The refinery is ready for commissioning with the completion of the pre-commissioning tests. With the satisfactory inspection by DPR, the facility is ready for start-up and we are aiming for August 2020.”
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Meanwhile, Dangote’s $12 billion refinery has a capacity to refine 650,000 bpd. Not only will all these refineries create jobs but it will also reduce the outflow of foreign exchange.
As entrepreneurs and great readers of Entrepreneurs.ng, what’s your thought about this new development with Nigeria’s domestic refinery?
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