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DMEA refining DMEA
NNPC, partners sign FEED contract for condensate refinery project
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STATE-OWnED nigerian national Petro- leum Corp. (nnPC) and two private nigerian companies signed a front-end engineering and design (FEED) contract for a new downstream project at the weekend.
According to nigerian press reports, the contract provides for the US-based engineering firm KBR and nnPC’s engineering subsidiary nETCO to provide FEED services for the pro- ject, which envisions the construction of a gas condensate-processing plant. The facility would be the first of its kind in the country.
As of press time, nnPC and its partners, Seplat Petroleum Development and Borkir international, had not disclosed the value of the contract. They have indicated, though, that they are hoping to execute the deal quickly.
Mele Kyari, nnPC’s group managing direc- tor, said at a ceremony marking the signing of the contract that he expected KBR and nETCO to finish the FEED work by June of next year.
Meeting this deadline will allow the inves- tors in the condensate refinery project to make a final investment decision (FiD) on schedule in July 2020, he said.
Kyari also said that nnPC saw the project as a priority, since it could help nigeria reduce its dependence on imported petroleum products.
“This country expects that we secure all our petroleum products requirements in-country. We have a clear mandate from the President
[Muhammadu Buhari] to stop petroleum importation, and we believe this can be done. Condensate refining is something that we at the nnPC are very passionate about and it’s a national objective that all needs support,” he stated.
gas processing
nnPC and its partners signed the contract just a few days after nigerian Gas Co. (nGC), another subsidiary of nnPC, revealed that it was look- ing into the possibility of expanding into the natural gas processing sector.
Roland Ewubare, the chief operating officer (COO) of nnPC, said at nGC’s board meeting last week that the company had already taken several steps in this direction.
For example, he said, nGC has acquired stakes in several gas plants, including the Sapele gas compression facility, the Makaraba gas-pro- cessing facility and Assa north-Ohaji South Gas Processing Co. (AGPC).
Ewubare did not provide a detailed break- down of the company’s gas-processing plans, but he did say that a move into the downstream sector had the potential to improve nGC’s finances.
“Completion of these gas processing projects are expected to significantly increase nGC’s rev- enue and boost the Federal Government’s Eco- nomicRecoveryandGrowthPlan,”hesaid.™
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w w w . N E W S B A S E . c o m Week 50 19•December•2019