More Competition as Another Nigerian Company Secures Approval to Build Refinery, Location Confirmed

• Nigeria is set to have another refinery, and the federal government, through the NMDPRA, has approved it
• The latest refinery license was secured by MRO Energy Limited, with plans for construction in Delta state
• The Dangote Refinery and the NNPC Limited's Port Harcourt and Warri refineries remain important in FG's drive for self-sufficiency in petroleum products

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Federal Government of Nigeria, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has issued another licence for the construction of another refinery,

MRO Energy Limited, an energy company, received the approval for a 10,000 barrels per stream day refinery at Imode In Ughelli, Delta State.

The MRO Energy approval comes just two months after Process Design and Development Limited also secured a licence to construct a 27,000 barrels per day refinery in Gombe State.

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MRO Energy Limited celebrates approval

NMDPRA in a statement shared on X, confirmed issued the licence to MRO Energy Limited.

The statement reads:

"The Authority Chief Executive, Engr. Farouk Ahmed presented a Licence To Establish (LTE) a 10,000 BPSD Refinery at Imode In Ughelli, Delta State, to MRO Energy Limited."

Punch reports that Nigeria will have about 11 modular and regular refineries when the new refinery is completed.

Also, the Petroleum Products Retail Outlets Owners Association of Nigeria has indicated plans to establish a new refinery with an initial capacity of 50,000 barrels per day.

Nine completed refineries in Nigeria

Here is the list of completed refineries in Nigeria

• Edo Refinery and Petrochemical Company
• Duport Midstream
• Walter Smith Refinery
• OPAC Refinery, Delta State
• Niger Delta Petroleum Refinery (Aradel)
• Old Port Harcourt Refinery
• Warri Refinery and Petrochemical Company (WRPC)
• New Port Harcourt Refinery

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Nigeria drive for self-sufficiency in refining crude oil

The enactment of the Petroleum Industry Act (PIA) in 2021 heralded Nigeria's drive for self-sufficiency in refining crude oil for domestic consumption.

For decades, Nigeria relied heavily on imported petroleum products until the commissioning of the Dangote Refinery and the revival of the Port Harcourt Refinery.

The Nigerian National Petroleum Company Limited (NNPC) recently announced that it had finally ended fuel importation.

The Nigerian Upstream Petroleum Regulatory Commission has also set ambitious targets for domestic refining, aiming to process 770,500 barrels of oil per day to enhance local production.

Local refineries can help crash cooking gas prices

Legit.ng earlier revealed that Suresh Kumar, the managing director and CEO of NIPCO Plc outlined key measures needed to reduce the cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, in Nigeria.

Speaking at the 2024 National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), themed “Sustainable Energy Growth in Nigeria – LPG and the Future, Kumar stated that the key to reducing the rising cost of cooking gas lies in supporting local refineries, such as the Dangote Refinery, to enhance domestic gas production.

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Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng