Page 5 - DMEA Week 08 2021

DMEA COMMENTARY DMEA

Port Harcourt refinery

Suspended operations performance recorded is attributed to the
The launch of bidding for work on downstream ongoing revamping of the refineries, which is
infrastructure followed the revelation in April by expected to further enhance capacity utilisation
the head of NNPC, Mele Kyari, that the company when completed,” NNPC said. The utilisation
had suspended operations all four refineries so rate has since dropped to zero, with the four
that it could seek funding for the refurbishment units not having operated since early 2019.
of the associated refineries. Mele Kyari added NNPC is understood to still be considering
that it would not continue to act as operator of offloading the majority of its stakes in the refin-
the facilities once they resume operations. eries, while looking at operational models to
The NNPC’s four facilities have a combined increase efficiency as well as “more scrutiny of
nameplate capacity of 445,000 bpd, with the shareholders”.
Kaduna and Warri facilities having a theoretical Despite the positive news of the loan deal,
throughput capacity of 110,000 bpd and 125,000 Abuja will continue to rely on fuel imports in
bpd respectively. the short term, with the start-up of the 650,000
After years of under-investment, the age- bpd Dangote refinery at Lekki near Lagos having
ing facilities have recently typically run at less been pushed back to early 2022.
than 10% of capacity, and a general update on Meanwhile, a ray of light continues to shine
operations by NNPC in January 2019 disclosed from the rise of modular refining. While the
that full turnaround maintenance (TAM) at the scale is not yet comparable with the potential
plants had not been carried out for 42 years. impact of the Dangote refinery, modular facil-
Four months later, the company released ities located near oilfields provide improved
data showing that the refineries were operating fuel distribution in remote areas while reducing
at just 5.55% of their capacity, with that figure reliance on infrastructure that is susceptible to
being a six-month high. “The lower operational vandalism.™

Kaduna refinery

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