The Nigerian National Petroleum Corporation (NNPC) has announced its plans to establish two condensate refineries with a total refining capacity of 200,000 barrels per day.
Image: NNPC officials makes the disclosure at the bid opening for the provision of consultancy services for a feasibility study on the refineries. Photo: courtesy of Nigerian National Petroleum Corporation.
The two refineries, which are planned to be at built at Western Forcados Area and Assah North Ohaji South (ANOH) Areas of Delta and Imo State respectively, are intended to increase the nation’s revenue base, and eliminate importation of petroleum products.
Additionally, the projects are expected to increase the country’s energy security and boost the NNPC refining capacity from 445,000 barrels per day to 645,000 barrels per day.
NNPC plans to build the two refineries, which would supply gas to power plants in parts of the country, in partnership with private partners.
NNPC group managing director Dr Maikanti Baru said: “The condensate refineries are going to be fully on commercial basis and we intend to get partners that would invest.
“We are willing to get partners and operate in a similar manner with NLNG model where we could just get a majority share but not a controlling share.”
As part of the initiative, Nigeria’s state oil company NNPC has launched bidding for the provision of consultancy services to conduct feasibility study for the refineries.
Baru added: “It is a great day for me and NNPC and am happy that we have got some bids from companies who are willing to carry out the feasibility study for the NNPC.”
Baru said that the initiative complies with the overall objectives of the Federal Government to boost the economy to 7% of Gross Domestic Product (GDP) by the end of this decade through the Economic Recovery and Growth Plan (ERGP).
Recently, NNPC said it is considering developing a 100,000-barrels-per-day brownfield refinery each in Port-Harcourt and Warri, to boost local refining capacity and reduce petroleum products importation.
NNPC corporate planning and strategy group general manager Bala Wunti said that the move would preserve the company’s market share at the upstream, midstream and downstream sectors of the country’s hydrocarbon value chain.