4 Things NNPC Hopes To Achieve With 2 New Condensate Refineries
Nigeria has over the years continued to spend huge amount of funds of power, but Nigerians have continued to pay for darkness, like a report of a rights group claimed.
There have also been cases of pipeline vandalism that are sometimes blamed for the nation's inability of having constant light.
Now, the Nigerian National Petroleum Corporation (NNPC) says it will establish two condensate refineries with a total refining capacity of 200,000 barrels per day to address some of these issues.
The corporation announced the plan in a statement by its spokesman, Mr Ndu Ughamadu, in Abuja on Tuesday.
Ughamadu said 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 present as gaseous components in the raw natural gas produced from natural gas fields.
According to Ughamadu, the NNPC Group Managing Director (GMD), Dr Maikanti Baru, made the disclosure at the bid opening for the provision of consultancy services to carry out a feasibility study for the refineries.
1. Eliminate Importation Of Petroleum Products
The spokesman for the NNPC explained that the establishment of the green refineries was part of the strategies to eliminate importation of petroleum products and guarantee energy security for the country.
2. End Vandalism And Increase Gas Supply To Power Plants
The NNPC is optimistic that the new refineries will stem the incidences of pipeline vandalism and increase gas supply to power plants in parts of the country to make room for a more stable power supply.
3. Increase Revenue For Nigeria
The condensate refineries which would operate along the NLNG model, are expected to also increase the nation’s revenue base, provide jobs for the people and save for the country a lot of foreign exchange.
4. Impact Aviation
Nigeria is trying to restart its national carrier airline business and the NNPC believes that the refineries will also be an opportunity for the nation to restart the Aviation Turbine Kerosene (ATK) production.
Baru further highlighted that the strategic initiative would grow the NNPC refining capacity from 445,000 barrels per day to 645,000 barrels per day.
“The condensate refineries are going to be fully on 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 further noted that the model would allow the private sector to have the confidence to drive the plants and ensure that the bureaucracy of 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 objective of the Federal Government to grow the economy to seven per cent of the Gross Domestic Product (GDP) by 2020, through the Economic Recovery and Growth Plan (ERGP).
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