NNPC to set up 200,000bpd condensate refineries
The Nigerian National Petroleum Corporation, NNPC, has announced plans to establish two condensate refineries with a total refining capacity of 200,000 barrels per day.
NNPC Group Managing Director, Dr. Maikanti Baru, who disclosed this at the bid opening for consultancy services on a feasibility study for the refineries, said the refineries will be located at Western Forcados Area and Assah North Ohaji South Areas of Delta and Imo States respectively.
Baru noted 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.
A statement by the Group General Manager, Group Public Affairs Division of NNPC, Mr. Ndu Ughamadu, said 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.
When fully operational, the refineries would increase gas supply to power plants in parts of the country.
Baru in the statement, noted that the condensate refineries which would operate along the NLNG model, would increase the nations revenue base, provide jobs for the people and save for the country a lot of foreign exchange.
He added that the strategic initiative would increase the energy security of the nation and 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 stated.
Baru affirmed that the initiative was in line with the overall objectives of the Federal Government to grow the economy to 7 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 are available to drive the growth in the economy, adding that the bid opening was the first step to realizing the condensate refineries ambition.
According to him, the refineries would 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.
In a 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 nations hydrocarbon value chain.
Wunti added that the bid opening was a history making opportunity that was geared towards securing the future of the corporation.
Photo caption: (L-R) Representative of a bidding company, Okiotor Nyore, Manager Supply Chain Management of NNPC, Engr. Sandy Heman, displaying a sealed bid to the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr. Maikanti Baru, at the NNPC Condensate Refineries Bid Opening at the Corporation headquarters in Abuja last Monday