NNPCL Signs Deal With African Refinery To Co-locate 100,000bpd Refining Plant In PHRC

Nigeria’s refining capacity has received a new boost as energy giant, the Nigerian National Petroleum Company Ltd has entered a deal with African Refinery to build a 100,000bpd refinery within the Port Harcourt Refinery and Petrochemical Complex.

The NNPCL disclosed the deal on Thursday via its social media handle, seen by THE WHISTLER.

“NNPC Ltd.’s move to boost local refining capacity witnessed a boost today with the signing of a share subscription agreement between the Port Harcourt Refining Company (PHRC) and African Refinery for the co-location of a 100,000bpd capacity refinery within the PHRC complex,” said the NNPCL.

The state-owned company had begun an ambitious move to reduce Nigeria’s import of petroleum products which would play a huge role in conserving the country’s foreign exchange.

Part of the move was to buy a 20 per cent stake in 650,000 barrels per day (bpd) Dangote Refinery and Petrochemicals in Lagos.

The NNPCL also began revamping moribund refineries in Africa’s biggest economy. Last year, the company announced the mechanical completion of phase 1 of the 210,000bpd PH refinery.

Last month, the Group Chief Executive Officer of the NNPCL, Mele Kyari said mechanical works had been completed at the Warri refinery, and the facility is undergoing regulatory compliance procedures.

The company also eyes the completion of works at the Kaduna Refinery by the end of 2024.

With the signing of the deal with African Refinery, the NNPCL sees it as a boost to the supply of petroleum products in the local market which would eventually crash high prices.

“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,” the NNPCL said on the new deal.