Only 4 Refineries Near Completion of 70 Licensed, Others Dormant Or Expired
Of the 70 refineries licences that the Department of Petroleum Resources (DPR) has approved, only 30 are active, The Nation learnt on Tuesday.
According to a document entitled: “List of Private Licensed Refineries”, dated July 8, 2021, obtained by The Nation, 35 refineries have the Licence to Establish (LTE).
The document shows that only 10 of those licensed to establish are active while 25 are not.
It added that two of the refineries Licensed To Operate (LTO), and they are active. One of them is a toppling plant of Niger Delta Petroleum Resources (Phase 1 and 2) in Ogbele, Rivers State with BPSP capacity of 6,000. Its status is that its construction has been completed. The plant has been transferred to Downstream Monitoring and Regulation (DMR) for monitoring.
The other one is the toppling plant of the Waltersmith Refining & Petrochemical Company Limited, Ibigwe, Imo State that has 5,000 BPSP Capacity. The DPR has issued it the License To Operate.
DPR noted that the total proposed capacity of active and non-active refineries so far granted have crude commitment as follows: 1,489,000 Barrel Per Stream Day (BPSD) active and 1,862,000 BPSD not active, totalling 3,510,000 BPSD.
On the refineries with Approval To Construct/Relocation (ATC/R), the DPR listed the refineries’ licences that are not active and the ones that are active. The document also revealed their status.
It revealed that Niger Delta Petroleum Resources and Petrochemical Limited in Escravos, Delta State that has 100,000 BPSD capacity that is a conversion plant is not active.
The document said RG Shinjin Petrochemicals Limited in Koko, Delta State with 10,000BPSD capacity that is a Hydro-skimming Plant is not active.
According to DPR, the Jil-Amber Consortium, PHRC, Rivers State with 100,000BPSD capacity that is a conversion plant is not active.
On the other hand, it noted that the Dangote Oil Refinery Company located in Lekki, Lagos, with 650,000 BPSD capacity that is a conversion plant is at construction stage.
It noted that the construction of OPAC Refineries in Umuseti, Delta State that has 10,000 BPSD capacity which is a Toppling Plant has been completed. According to the DPR, it is at commissioning stage.
Similarly, the document disclosed that the Niger Delta Petroleum Resources in Ogbele, Rivers State , Hydro-skimming Plant, with addition of 5,000 BPSD, has been completed and also at its commissioning stage.
The DPR said the Edo Petrochemical Refinery Limited, Ikpoba-Okha, LGA, Edo State, a hydro-skimming plant, has been completed and at it is at its commissioning stage.
The DPR’s Head, Public Affairs, Mr. Paul Osu, responded to The Nation via a text message that licenses have validity period.
He noted that upon expiration they become inactive, stressing that there is a window of reactivation, open to the owners.
According to him, there is no need for sanctioning since they have validity period. He said that makes them better described as inactive.
Osu said “licenses have validly period. Once the validity period expires, the license becomes inactive. However, the proponent or company can reactivate the license by following the DPR procedures as spelt out our guidelines. So there is no need to revoke or sanction since the licenses are tied to their validity period. That is why we use the term, ‘ inactive’ to describe their status.”
Meanwhile, he issued a press statement to note that petrol price will not hit N1000 per litre on the removal of subsidy without alternative energy.
He noted that the ”Director specifically created a scenario of price instability of PMS based on the current dollar to naira differentials to the effect that if Nigeria continues to rely on the importation of PMS without creating alternative energy sources like CNG, LNG, AUTOGAS, etc. which will provide price buffers for consumers and ultimately crash the price of PMS, then the product will be subject to prevailing market forces.”
According to him, the Director further re-emphasised that the strategy for alternative energy sources is a cardinal program of the government, which has led to the declaration of the Decade of Gas (DoG) to migrate the economy to a gas-based economy by 2030.”
Osu stated that the Department would continue to enable businesses and create opportunities through its downstream focus on Quality, Quantity, Integrity, and safety (QQIS)
Source:- The Nation