Business Hilights
Tracking Nigeria's Headline Business News Online

Two new private refineries coming in Rivers, Delta states this year—NNPC

Two consortia, LRR Group and JALEMBA Group are currently applying finishing touches and documentation ahead of take off of construction activities for their private refineries in both Rivers and Delta states before the end of the year.

The two refineries are coming on a co-location agreement with the Nigerian National Petroleum Corporation (NNPC).

Whereas LRR Group will build the 117,000 barrels per day refinery near the existing Warri refinery, JALEMBA, will build a 100,000 bpd refinery near the present Port Harcourt refinery.

This was revealed by the Chief Operating Officer in charge of Refining and Petrochemical at the NNPC, Mr. Anibor Kragha, who represented the managing director of the corporation during the recent annual conference of the National Association of Energy Correspondents in Lagos.

According to him, “The three refineries at full capacity will deliver about 50 per cent of that. Dangote Refinery, I understand, will deliver about 95 per cent of that when it comes on stream.

“That is where the whole idea of becoming a net exporter of petrol is coming from – if the three refineries operate at full capacity and Dangote also comes on stream,” Kragha said.

However, contrary to earlier claims by the same NNPC that it was planning to sell off refurbished refineries that are still performing below 15 per cent capacity, it is searching for financiers with technical expertise to rehabilitate the existing refineries within the next 24 months.

According to Kragha, “On the co-location, a 100,000-barrel per day refinery will be co-located in Port Harcourt Refinery; there is also a 117,000 barrel per day in Warri”.