Economy and Business

NNPCL’s $897m Warri Refinery Renovation Fails as Facility Remains Shut

The Warri Refining and Petrochemical Company has remained shut since January 25, 2025, despite the Nigerian National Petroleum Company Limited (NNPCL) spending $897.6 million on its renovation.

Documents from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), reveal that the refinery, which was declared operational in December 2024 by former NNPCL Group Chief Executive Officer Mele Kyari, failed to produce Premium Motor Spirit (petrol) before shutting down due to safety concerns in its Crude Distillation Unit (CDU) Main Heater.

“The Warri Refining and Petrochemical Company was shut down on 25th Jan. 2025 due to safety concerns over the CDU Main Heater,” the document stated.

The 125,000 barrels-per-day refinery, located across Ekpan, Uvwie, and Ubeji in Warri, had been dormant for decades before its reported revival. Commissioned in 1978, the facility also has an annual production capacity of 13,000 metric tonnes of polypropylene and 18,000 metric tonnes of carbon black.

President Bola Tinubu had commended the NNPCL for completing the refurbishment and restarting operations at 60 per cent of installed capacity. The refinery was expected to produce and store critical products such as Straight Run Kerosene, Automotive Gas Oil (diesel), and heavy and light Naphtha.

However, findings show that operations halted barely a month after the relaunch, sparking fresh concerns over the management and transparency of Nigeria’s refinery rehabilitation efforts.

Further investigations revealed that the Port Harcourt Refining Company, which resumed operations in November 2024 after a $1.5 billion rehabilitation project, has also been underperforming. The facility, with a capacity of 60,000 barrels per day, has been running at just 37.87 per cent of its installed capacity.

Production data showed the refinery averaged 82.55 million litres of refined products monthly between November 2024 and April 2025—falling short of its expected output by 135.45 million litres.

This performance contradicts claims by NNPCL spokesperson Femi Soneye that the Port Harcourt refinery was operating at “70 per cent” capacity, with plans to ramp up to “90 per cent.”

The Port Harcourt refinery’s outputs include Premium Motor Spirit blending components like Straight-Run Gasoline and Straight-Run Naphtha, as well as Automotive Gas Oil (diesel), jet fuel, Household Kerosene, and Liquefied Petroleum Gas.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button