DPR to strengthen local refining through 11,000bpd refinery - THE GUARDIAN
By Kingsley Jeremiah, Abuja
•Directs oil firms with LTEs to brace-up
The Department of Petroleum Resources (DPR), yesterday, reiterated the need to strengthen local refining of petroleum products in efforts to meet demand and reduce capital flight through import of refined products.
Director, DPR, Ahmad Shakur, said the move is also part of the drive to realise the objectives of the Economic Recovery and Growth Plan (ERGP), and other similar Federal Government initiatives aimed at deepening local refining in Nigeria.Last year alone, Nigeria spent a whopping N3trillion importing about 18 billion litres of Premium Motor Spirit (PMS) popularly called petrol, the Petroleum Products Pricing Regulatory Agency (PPPRA), had said.
This revelation has already irked some stakeholders, who criticised the poor state of Nigeria’s refineries, and the absence of modular refineries to stem the tide.Auwalu said the agency would in the coming weeks grant a ‘Licence to Operate’ (LTO), to Niger Delta Petroleum Resources Limited (NDPR), a subsidiary of Niger Delta Exploration & Production Plc (NDEP), for a further 11,000 barrel per day (bpd) refinery.
Commending the company, he noted in a statement that in addition to its maiden 1,000 bpd Diesel Topping Refining Plant, NDPR has consolidated its capacity by expanding the plant with an additional 5,000 bpd.Auwalu said: “The expansion provides for other products slate to include kerosene, marine diesel and heavy fuel oil to cater to the Nigerian market.
“The expanded plant located at Ogbele, Ahoada, in Rivers State, will potentially reduce importation of petroleum products with corresponding savings in foreign exchange and employment generation for our teaming youths.”According to him, major equipment and units of the second Train of 5,000bpd have been fabricated, inspected, tested, and modules are currently being shipped to Nigeria.
When installed, the upgraded refining complex would bring the total refining capacity to 11,000 bpd, and would then have the requisite units to produce diesel (512,775 litres/day), kerosene (317,205 litres/day), marine diesel (281,907 litres/day) and heavy fuel oil (234,525 litres/day), and particularly Premium Motor Spirit/gasoline (168,540 litres/day), he said.
The Director noted that DPR provided necessary regulatory guidance and technical support throughout the project development phases for NDPR to contribute about 4.2 per cent of national daily diesel demand, and about 0.4 per cent for petrol in Nigeria.“Having achieved these giant strides, the DPR is set to grant NDPR a ‘Licence to Operate’ (LTO) the plant expected to be commissioned soon.
“This laudable project is expected to catalyse further growth of the Nigerian refining industry by attracting more investments as more players gain confidence. Similarly, DPR has directed all modular refinery ‘Licence to Establish’ (LTE) licence holders to demonstrate expected performance within the two year validity, to enable them obtain ‘Approval to Construct’ (ATC), and other milestone approvals.