In 2017, plans were unveiled for the construction of Greenfield Refinery in A’ibom. According to the Nigerian National Petroleum Corp. (NNPC), the proposed 10,000 b/sd modular refinery was to be constructed by PT Intim Perkasa Nigeria Ltd in the state of Akwa Ibom in Nigeria.
NNPC confirmed the project is a part of the Nigerian federal government’s initiative to increase the country’s existing refining capacity by using modularly built refineries while withholding further details about the planned refinery.
The proposed project would receive professional support from NNPC and its greenfield refinery department, which specializes in new refinery projects in accordance with the government’s policy on the construction of modular refineries, according to Maikanti Baru, NNPC’s managing director.
Baru stated that, on their part, they have started an ambitious plan to fast-track programs to recover their capacity utilization from 30% to a minimum of 90% in the coming 24 months.
In order to bolster the combined 445,000 b/sd capacity of its three refineries, the NNPC is still working to secure financial and technical expertise from third parties, Baru added. Given that Nigeria’s population is expected to increase by 2025, Baru said that the country would need to produce more than 40 million liters of fuel per day to meet domestic demand, which is more than NNPC’s three existing refineries can supply.
Following a number of recent initiatives by NNPC to advance its rehabilitation and expansion program at Nigeria’s state-owned refineries in order to meet the country’s domestic demand for fuel and lessen its reliance on foreign imports, the announcement of PT Intim Perkasa’s proposed modular refinery represents the next move.
PHRC has two refineries, and in addition to those two refineries, Warri Refining & Petrochemical Co. Ltd.’s 125,000 b/sd refineries in Delta State and Kaduna Refining & Petrochemical Co. Ltd.’s 110,000 b/sd refineries in Kaduna State are also part of NNPC’s proposed $500 million rehabilitation program.
Reported on 10 February 2014
Greenfield Refinery in A’ibom To be funded by Eton at U.S $1.7 Billion
As Nigeria continues to grapple with the challenges associated with petroleum products distribution, Eton Group in conjunction with Qua Petroleum Refinery Ltd is to invest about $1.7 billion in the construction of a greenfield refinery in Akwa Ibom State.
Speaking at the signing ceremony of the agreement in Abuja, Director of Eton Finance Private Ltd, Allen Rennie, said when operational, the refinery will produce about 100,000 barrels per day.
He explained that the financing by the Eton Group is for $1.7 billion, while $1.4 billion represents funds for the re-engineering and construction of the export-designated refinery for Qua Petroleum Refinery.
Rennie, who stated that $300 million had been earmarked for start-up, operations, and feed stock, maintained that the financing is in form of joint venture funding with both companies working together to realize the goals of the project.
The deal will complete all financial and administrative formalities within the next two months, after which, re-engineering, approval for fabrication, and construction phases will be provided before the end of the year.