The Nigerian National Petroleum Company Ltd (NNPCL) has announced the signing of an agreement with African Refinery for a share subscription agreement with Port-Harcourt Refinery.
The agreement will see the co-location of a 100,000bpd refinery within the Port-Harcourt Refinery complex.
This was disclosed in a press statement on the company’s official X handle detailing the nitty-gritty of the deal.
According to the NNPCL, the new refinery, when operational, will produce PMS, AGO, ATK, LPG for both the local and international markets.
- It stated, “NNPC Ltd.’s moves to boost local refining capacity witnessed a boost today with the signing of share subscription agreement between NNPC Limited and African Refinery Port Harcourt Limited for the co-location of a 100,000bpd capacity refinery within the PHRC complex.”
- “The signing of the agreement is a significant step towards setting in motion the process of building a new refinery which, when fully operational, will supply PMS, AGO, ATK, LPG, and other petroleum products to the local and international markets and provide employment opportunities for Nigerians.”
What you should know
Nigeria has, in recent times, sought to end its dependence on petroleum product importation. The administration of President Muhammadu Buhari granted licenses to various modular refineries to shore up the country’s local production coupled with the huge assistance provided to the 650,000bpd Dangote Refinery in Lagos. This includes the NNPCL buying a 20% stake in the refinery.
However, the country still relies on foreign import of petroleum products.
The removal of fuel subsidy and subsequent devaluation of the naira have exacerbated the urgency of ending the importation of fuel. The recent supply of diesel and aviation fuel from the Dangote Refinery offers a glimmer of hope that the days of importation of petroleum products are nearly over.
