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Nigeria rehabilitates the Kaduna Refinery

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By Mercy Kelani

Support from the federal government will ensure its rapid restoration.

The Kaduna Refinery is prepared for full operations by the fourth quarter (Q4) of 2024. To achieve this, support from the federal government will ensure the rapid restoration of critical infrastructure. Through the project, there will be enhancement of energy security and economic growth. The largest economy in Africa, Nigeria, is set to ready to begin another oil refinery project that focuses on the rehabilitation of an abandoned refinery. This project is set to kick off months after Dangote launched his oil refinery.

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has announced that the current reconstruction of the Kaduna Refinery and Petrochemicals Company (KRPC), which is located in the Northern part of the country, will be completed early. This is to ensure that operations begin in the fourth quarter (Q4) of 2024. A recent news report from the national petroleum company stated that Lokpobiri made this disclosure during an inspection trip of the Kaduna Refinery and Petrochemicals on October 28, 2023.

Energy security and economic growth will be enhanced in the country.

According to the Nigerian National Petroleum Company (NNPC) Limited, Lokpobiri carried out an evaluation of the status of work on the ongoing project of the refinery. The minister affirmed that he witnessed massive progress in the rehabilitation during the course of his trip. As a result, he expressed optimism that the project will be completed by the end of 2024. Also, the minister pledged the assistance of the federal government of Nigeria towards ensuring the prompt completion of the project.

He added that he would not cease to hold responsible parties accountable for the repair of refineries in the country. Furthermore, Lokpobiri said that the project must commence with immediate effect so as to provide support for energy security and economic growth in the country, as these factors are necessities for sustained development. The Group Chief Executive Officer (CEO) of NNPC Ltd., Mele Kyari, assured the minister that the fuel plant of the refinery will be completed by the end of next year, 2024.

NNPC signed a maintenance service contract with Daewoo.

Mele Kyari expressed confidence that he is certain that the NNPC will get required financing to finish its completion, and as time goes on, will commence the delivery of value to Nigerians. He stated that the plan for the quick-fix is 60,000 barrels per day, so that profit can be made for the plant. Also, the other part of the refinery will be continued to ensure its improvement to its full capacity. This will also be in line with the completion of the Build, Operate, and Transfer (BOT) on the pipeline, which will provide a dependable pipeline delivery infrastructure.

It was revealed that in February, the Nigerian National Petroleum Company (NNPC) signed a maintenance service contract worth $741 million with Daewoo Engineering and Construction Company Limited, a South Korean engineering firm, for a repair of Kaduna Refinery and Petroleum Company (KRPC). Also, in October 2022, KRPC and Daewoo signed Memorandum of Understanding (MoU) for the rehabilitation of the refinery. Daewoo Engineering and Construction Group also has involvement in the current reconstruction at the Warri refinery.

A $1 billion loan from Afreximbank majorly financed the project.

Additionally, the Federal Executive Council (FEC) had ensured authorization of the rehabilitation of the Warri and Kaduna refineries, with an estimated amount of $1.4 billion in August 2021. With a production capacity of 210,000 barrels per day from both refineries, the NNPC hired Maire Tecnimont SpA in Italy for the renovation of the refineries in the Warri, Port Harcourt. The major finance of the project was a $1 billion loan from the African Export-Import Bank (Afreximbank).

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Bureau of Public Enterprises: Website

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