• Sunday, March 03, 2024
businessday logo


Kaduna Refinery resumes production at 60% capacity utilisation


dangote-refineryKaduna Refining and Petrochemical Company (KRPC) has resumed refining of petroleum products at 60 percent installed capacity, eight months after it stopped operations due to lack of crude oil.

This was disclosed by Saidu Mohammed, company’s managing director, during a media tour at the commencement of production following successful turn-around maintenance of the plant by local engineers, which lasted eighteen months.

According to him, “the resumption also raises the hope of an end to perennial petrol shortages that have plagued Africa’s largest crude producer.”

It could be recalled that the last time the plant operated was in January 2015, after which they were shut down. Originally designed to refine 110,000 barrels of crude per day, when producing at full installed capacity, the Kaduna Refinery presently refines 36,000 barrels of crude per day and produces 3,083,100 litres of petrol, 1,233 litres of kerosene and 2,102.400 litres of diesel daily.

The management however said the figures would increase by the time production hits 90 percent installed capacity by the first quarter of 2016.
“As at today, the Nigerian National Petroleum Corporation (NNPC) imports 50 percent of the petroleum products into the country as part of the 40 million litres daily consumption by Nigerians,” said Shehu Malami, in charge of production.

According to him, when the refinery operates at 60 percent capacity, it will save the nation the following amount: $117,218 million daily on importation of LPG, $1.261 million daily on importation of PMS, $448,364 daily on importation of kerosene, $759, 436 daily on diesel and $484,871 daily on importation of fuel oil. These figures represent a total saving of $3.071 million daily for fuel imports only.

Despite the resumption of operations at Kaduna and other refineries, the long queues are yet to disappear in most parts of the North. This could be attributed to pipeline vandalism and the inability of the PPMC to resume lifting of refined products.

The Muhammadu Buhari administration since it came on board is determined to end petrol importation by revamping the once moribund refineries. It is hoped that the resumption of refinery will improve the supply of fuel in Nigeria and allow the country to make savings on refined fuel and other petroleum products.