NNPC plans to set up two condensate refineries

The Nigerian National Petroleum Corporation (NNPC) says it will establish two condensate refineries with a total refining capacity of 200,000 barrels per day.

  Dr Maikanti Baru,the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC)

Dr Maikanti Baru,the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC)

The spokesperson of the corporation, Mr Ndu Ughamadu, said in a statement in Abuja, on Tuesday that the refineries would be located at the Western Forcados Area and Assah North Ohaji South (ANOH) Areas of Delta and Imo state, respectively.

Natural-gas condensate is a low-density mixture of hydrocarbon liquids that are present as gaseous components in the raw natural gas produced from natural gas fields.

Ughamadu quoted the Group Managing Director of the Corporation, Dr Maikanti Baru in the statement, as making the disclosure at the bid opening for the provision of consultancy services to carry out a feasibility study for the refineries.

Baru said the establishment of the green refineries was part of the strategies to eliminate the importation of petroleum products and guarantee energy security for the country.

According to him, it will also increase gas supply to power plants in parts of the country.

He added that the condensate refineries which would operate along the NLNG model would increase the nation’s revenue base, provide jobs for the people and save for the country a lot of foreign exchange.

Baru said that the strategic initiative would increase the energy security for the nation and grow the NNPC refining capacity from 445,000 barrels per day to 645,000 barrels per day.

The refineries, when fully operational, would increase gas supply to power plants in parts of the country.

Also read  Court orders permanent forfeiture of Diezani's $153.3m to FG

“The condensate refineries are going to be fully on a commercial basis and we intend to get partners that would invest.

“We are willing to get partners and operate in a similar manner with NLNG model where we could just get a majority share but not a controlling share,” he said.

He further noted that the model would allow the private sector to have the confidence to drive the plants and ensure that the bureaucracy government business was removed.

“When the implementation of the Petroleum Industry Governance Bill (PIGB) becomes fully operational, the National Petroleum Company (NPC) would be steady as it would be governed by the Companies and Allied Matters Act (CAMA).”

The GMD affirmed that the initiative was in line with the overall objectives of the Federal Government to grow the economy to seven per cent of Gross Domestic Product (GDP) by 2020 through the Economic Recovery and Growth Plan (ERGP).

He said the target of the NNPC was to ensure sufficient power and fuels were available to drive the growth in the economy, adding that the bid opening was the first step to realising the condensate refineries ambition.

“It is a great day for me and NNPC and I’m happy that we have got some bids from companies who are willing to carry out the feasibility study for the NNPC.

“The refineries will stem the incidences of pipeline vandalism, stressing that the refineries would also be an opportunity for the nation to restart the Aviation Turbine Kerosene (ATK) production,’’ Baru said.

In his presentation, the Group General Manager, Corporate Planning and Strategy, Mr Bala Wunti, said the move was a strategic step that would preserve the NNPC market share at the upstream, midstream and downstream sectors of the nation’s hydrocarbon value chain.

Also read  Court to rule on  El-Zazaki’s bail application Aug. 5

He added that the bid opening was a history-making opportunity that was geared towards securing the future of the corporation.

Also, the Manager, Supply Chain Management of the NNPC, Engr. Sandy Heman, said the public bid opening was the sequel to the 2007 provisions of the Public Procurement Act

(Visited 22 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>