Refining in Nigeria: history, challenges and prospects

• Main Author: Anthony Ogbuigwe
• Format: Article
• Language: English
• Published: SpringerOpen 2018-09-01
• Series: Applied Petrochemical Research
• Subjects: Capacity utilisation; Governance; Pipeline vandalisation; Turnaround maintenance
• Online Access: http://link.springer.com/article/10.1007/s13203-018-0211-z

Abstract There are four major existing refineries as follows: Old Port Harcourt Refinery; capacity 60,000 bpsd commissioned in 1965.Warri Refining and Petrochemical Company; capacity 125,000 bpsd commissioned in 1978.Kaduna Refining and Petrochemical Company; capacity 110,000 bpsd commissioned in 1980.New Port Harcourt Refinery; capacity 150,000 bpsd commissioned in 1989.Thus, the total installed capacity is 445,000 bpsd. These plants in the last 15–20 years had a poor operating record with average capacity utilization hovering between 15 and 25% per annum. As a result, 70–80% of the national petroleum products demand is met through import. As at 2017, the aggregate demand of petroleum products in Nigeria was equivalent to 750,000 bpsd. Hence, there is ample scope for investment in new plants and revamp of the existing ones to make them more efficient. This paper traces the history of refining in Nigeria, highlights the current poor record of capacity utilization, proffers solutions for improving their viability, and presents prospects for growth of the industry in Nigeria.