Refiners urge NNPCL to sell Port Harcourt Refinery and others to finance modular plants.

The Crude Oil Refiners Association of Nigeria (CORAN) has urged the Nigerian National Petroleum Company (NNPCL) and the federal government to sell the Port Harcourt, Warri, and Kaduna refineries.

In a recent statement, CORAN’s Publicity Secretary, Eche Idoko, emphasized that the $1.5 billion spent on rehabilitating the Port Harcourt Refinery could have been better utilized to construct and support modular refineries, which would help address the nation’s energy crisis.

Idoko explained that adding ten modular refineries, alongside the Dangote Refinery, could eliminate the need for fuel imports in Nigeria.

He noted that while the country currently has 15 modular refineries, only five are operational and none produce petrol, with the others at various stages of completion.

He further urged the government to prioritize funding for modular refineries as a viable solution to Nigeria’s energy challenges.

“The $1.5 billion spent on the Port Harcourt refinery could have been used to develop 10 modular refineries, each capable of producing at least 10,000 barrels of PMS per day, totaling about 100,000 barrels daily,” Idoko stated. “With this capacity, along with the Dangote refinery, we could have addressed the issue and even started exporting fuel.”

He continued, “Currently, there are about 15 modular refineries—five are operational but not producing PMS, and the other 10 are nearing completion.

If the government supported these 15 refineries to produce PMS, the fuel scarcity problem could be resolved within 12 months, rather than continuing to invest in the Port Harcourt, Warri, or Kaduna refineries.”

These remarks come as NNPCL announced that the Port Harcourt Refinery is expected to begin commercial operations in September 2024, following several delays.

Additionally, the Dangote Refinery, with a capacity of 650,000 barrels per day, is anticipated to start producing petrol in September, according to government sources.