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Guardian Newspaper Nigeria – Mini-refineries As Model For Assembly Nigeria, South Sudan Oil Calls for

The importance of petroleum refinery especially for a rustic like Nigeria, which is closely endowed with crude oil, can’t be over-emphasized. In truth, its significance lays in the power to spice up industrialization, progress and growth of the country. In line with industrial requirements, the economic viability of a refinery is dependent on the interaction of three key parts; that are the types of crude oil used, the complexity of refining equipment and the specified kind/high quality of produce. Extra time, the nations’ three most prominent refineries situated in: Rivers, Delta and Kaduna have fallen below customary in assembly the oil refining wants of the nation despite the plentiful of crude oil in the country.

The story hitherto, has all the time been that of undulating efficiency and operate within the capability of “up at this time and collapse tomorrow”. Consequently, Nigeria has to depend on 90 per cent importation of its refined oil demands for home consumptions.

However not many people are aware of the existence of the ever functioning Ogbele Mini Refinery situated in Ogbele, Ahoada East Local Authorities Area of Rivers State with a nameplate capacity of 1,000bopd, 90per cent capacity utilization 540bpd production of diesel which is about eighty five,860 litres and a total refining output of 97.9m litres (Over 88m litres bought) since commissioned in 2010 till date.

Ogbele Plant sits on a small footprint of (204m2); half a football discipline with the most effective grade diesel in the nation as we speak produced from the plant, recorded no losses; no flares, off gasoline used for power, operated by two personnel in 12 hourly shift, plant operated by NDPR Personnel and over 89per cent of diesel produced bought to the domestic market. The plant is maintained by technicians and with occasional outsourced services; the Equipment Packager was by Chemex Integrated United State of America and 40per cent Turn Down Ratio of plant possible.

In recognition of the success of the Ogbele Mini Refinery, NileDelta (a JV firm of NDPR and NILEPET) was mandated to replicate the model by constructing a 5,000bpd Mini refinery with a possible to meet 15per cent of demand for diesel in South Sudan.

Speaking on the highlights of working a mini refinery from the company’s expertise at a forum organised by the Nigerian Academy of Engineering recently in Lagos, the Managing Director of Niger/Delta Exploration and Manufacturing PLC, Dr. Layi Fatona mentioned the project has proven to be an excellent investment because it has enhanced the variety of income base, ensure zero product loss since commissioning – five years on whereas validating the concept of modular refineries in Nigeria.

Fatona stated if such may very well be replicated across the Delta area, it would make refined products extra extensively obtainable commercially and stand doubtlessly as a solution to unlawful crude thieving and bunkering

Making a case for modular refinery within the country, he notes that it is a price efficient supply possibility for buyers especially when diesel is the lightest yield.

“The comparatively low capital price, flexibility and quick payback interval make it distinctively engaging. For the impartial producer, participating in a modular refining undertaking improves money-flows, ensures crude oil manufacturing is sufficiently optimized and delivers value past the standard oil production enterprise mannequin.

For the downstream entrepreneurs seeking to hedge in opposition to foreign trade publicity, domesticate gas provide and build native capacity, the modular refinery is a winning technique.

“In our thrust to handle the persistent scarcity, regular development in local demand of petroleum merchandise and the company’s personal refinery growth technique, we took the strategic resolution to increase the Ogbele Refinery capacity tenfold, with an additional 10,000barrel per day of processing capability and increased product mix”, he stated.

He canvassed deep curiosity in such investment. In 2016, he stated, Nigeria was second largest importer of United States aviation gasoline on the earth with an imports account for 100 per cent of aviation fuel utilized in Nigeria attributable to inability of current refineries to provide the fuel.

He stated West Africa consumes over 1billion litres of aviation gas annually and imports account for over 80 per cent of the quantity, which he states, Nigeria could be producing. To spice up the attractiveness of the sector, he recommends effective laws and reforms as a key driver for growth throughout the refining sector and full deregulation of the downstream sector.

With the steady improve in demand which specialists foresee to rise right by means of to the 12 months 2040; yet, refining capacity continues to lag behind, importation continues to be the major source of meeting the native shortfall in Nigeria. Statistics show that the current aggregate for Nigerian demand for petroleum products is roughly 55-60million litres per day, made up of; 35-40million litres of PMS; 8million litres of HHKero; 1.5million litres of ATKero; 9-12million litres of Diesel. This presents a clear alternative for modular and full-scale refineries.

The event of electric vehicles and renewable sources will not be foreseen to change this for Africa going by Africa and Nigeria tardiness in responding to the wave of innovation going-on in that sector the world over.

Bearing his minds on this growth with The Guardian, the Financial Community of West African States’ Regional Advisor for African Refiners Affiliation (ARA), Tony Ogbuigwe, stated if no new refining capability is added, and if present plants don’t ramp up, provide to Africa and consequently progress and industrial activity could be disrupted for a wide range of causes chief among is unavailability of merchandise from Europe and Asia, disruption in sea transportation, a major refinery in Europe or Asia goes into unplanned shutdown as a consequence of some local weather challenge as occurred recently in the United States of America. This, he identified could carry a risk to energy safety events in all places.

However, he explained that issues have changed as formally there is no extra subsidy on petroleum products coupled with the fact that PPPRA now functions coal gasification block diagram extra as a worth monitoring and intelligence company.

He added that Authorities has acknowledged its support for public sector involvement in refining whereas the drastic drop in crude oil value has made refineries now engaging.

“The foreseen full-scale refinery projects coal gasification block diagram is seen with Dangote Refinery mission with the capacity for 650,000. This may, nonetheless not be prepared till concerning the 12 months 2020. NNPC has announced plans to rehabilitate the present four refineries.

And likewise said intentions to collocate new refineries next to the prevailing refineries. Hence modular refineries are seen as quick answer to bridging the availability/demand hole, somewhat than continued importation”.

“A modular refinery is a processing plant that has been constructed totally on skid mounted structures. Each structure incorporates a portion of your complete process plant, and through interstitial piping the elements link together to form an easily manageable process”, he explained.

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