FG grants license for new refinery

In a strategic move to boost Nigeria’s refining capacity, the Federal Government has approved the construction of a new refinery in Delta State.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) granted a License to Establish (LTE) a 10,000 Barrels Per Stream Day (bpsd) refinery to MRO Energy Limited in Imode, Ughelli.

Engr. Farouk Ahmed, the Authority Chief Executive of NMDPRA, presented the license to MRO Energy on Tuesday, according to a statement shared on the Authority’s official X (formerly Twitter) account.

https://x.com/NMDPRA_Official/status/1881755580316229962?t=LjOwkjat7xKb-rgiTAX6qg&s=19

The development marks another milestone in efforts to enhance local refining capabilities and reduce Nigeria’s dependence on imported petroleum products.

The move comes just two months after a similar license was issued to Process Design and Development Limited for a 27,000 bpsd refinery in Gombe State. Despite these positive strides, challenges persist as many of Nigeria’s 11 modular and standard refineries remain either non-operational or underperforming.

To further tackle the refining deficit, the Petroleum Products Retail Outlets Owners Association recently collaborated with other stakeholders to initiate a refinery project targeting a capacity of 50,000 barrels per day.

Nigeria’s current refining capacity target is set at 770,500 barrels per day, highlighting the need for continued investment and innovation in the sector to meet domestic demand and stabilize fuel prices.