Nigerian government has granted 47 Licenses to Establish (LTE) and 30 Licenses to Construct (LTC) refineries within a year.
This initiative, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) represents a major effort towards the expansion of Nigeria’s refining capacity and improve the availability of petroleum products.
The licensing activities also reflect Nigeria’s ongoing efforts to revitalise its downstream petroleum sector, create jobs, stimulate economic development in the regions where the refineries are located, and strengthen the country’s energy security.
Chief Executive Officer NMDPRA, Mr Farouk Ahmed made these known during the press briefing organised by the Presidential Communications Team in Abuja on Tuesday.
Domestic refining capacity
He said continuous licensing initiatives are underway to increase domestic refining capacity, with the goal of promoting economic growth by creating jobs and enhancing energy security.
Ahmed further stated that the 47 granted licenses together represent a total refining capacity of close to three million barrels per day (bpd).
Reeling out a breakdown of the licenses, Ahmed stated that 47 LTEs account for a refining capacity of 1.75 million barrels per day (bpd), while 30 LTCs contribute 1.23 million bpd.
He further noted that currently, only four plants with LTC are operational, producing a steady output of 27,000 bpd.
He further mentioned that the LTC projects include five currently in the commissioning and construction phase
Among these is the Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day (bpd), alongside smaller projects such as AIPCC Energy’s 30,000 bpd facility and Waltersmith’s second train, which has a capacity of 5,000 bpd.
The NMDPRA CEO also disclosed other private plants contribution to include 679,500 bpd.
“Other modular refineries include; Aradel (11,000 bpd), OPAC (10,000 bpd), Waltersmith (5,000 bpd), Duport Midstream Limited (2,500 bpd), and Edo Refining and Petrochemicals Company Limited (1,000 bpd).
He further explained that government owned facilities managed by the Nigerian National Petroleum Company Limited contribute an additional 445,000 barrels per day (bpd) from refurbished plants.
“These include the Port Harcourt refinery with a capacity of 150,000 bpd, the Warri refinery with 125,000 bpd, the Kaduna refinery producing 110,000 bpd, and the old Port Harcourt plant with a capacity of 60,000 bpd.”
“These developments underline our commitment to reducing dependency on imported refined products,” he stated.
Modular refineries
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently granted licenses for several modular refineries across several states in Nigeria.
These approvals encompass projects in Edo, Delta, and Abia states, which are anticipated to significantly boost the country’s refining capacity.
Lateefah Ibrahim
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