Modular refiners still awaiting NNPC’s crude supply six months

Several modular refiners are still awaiting their first crude oil supplies despite the Nigerian National Petroleum Company Limited (NNPCL)’s pledge to support them as part of the federal government’s efforts to boost local refining capacity and reduce dependence on imported petroleum products.
The modular refineries, which are smaller-scale, flexible refining units, have been touted as a crucial step towards achieving energy self-sufficiency.

However, their operations remain hampered by the lack of readily available crude.

The delay has left many modular refineries operating below capacity or relying on alternative, often more expensive, sources of feedstock. Some operators have resorted to purchasing crude oil from third-party suppliers, while others have been forced to suspend operations.
One such operator, who spoke on condition of anonymity, expressed frustration over the situation.

“We have invested millions of dollars in building our refinery, and everything is ready to go. But without crude oil, we cannot start operations. The NNPC has been promising to supply us for months, but nothing has materialised,” the operator said.

Eche Idoko, national publicity secretary of Crude Oil Refinery-owners Association of Nigeria (CORAN), told BusinessDay that modular refineries are yet to receive a single drop crude oil or feedstock from NNPC since the naira-for- crude scheme kicked off in October 2024.

“Most of the modular refineries are producing at low capacity. They’ve had to source feedstock alternatives from third parties, which is usually very expensive,” Idoko said.

The CORAN official noted that most of the modular refineries in Nigeria are operating at about 20 percent capacity.
Nigeria currently has 30 licensed modular refineries. Five of them are operating and producing diesel, kerosene, black oil and naphtha. About 10 are under various stages of completion, while others have received licenses to establish.

The five of them which are working include: Waltersmith refinery (5,000 bpd); Aradel refinery (11,000 bpd); OPAC Refinery (10,000 bpd); Duport refinery (2,500 bpd) and Edo refinery (6,000 bpd)

Idoko added, “Edo refinery has had to resort to third parties and then they truck, which makes their landing cost four times what it’s supposed to be. Walter Smith and Aradel refineries are producing because they are sourcing directly from their marginal fields.

source: businessday.ng

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