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Nation’s refineries suffer low capacity utilisation


Port Harcourt refineries

Port Harcourt refineries

Despite the billions of naira being expended on Turn Around Maintenance of the country’s refineries, their capacity utilization has continued to decline. In fact, the refineries recorded zero production in the last three months of last year, making them unable to contribute to the country’s daily Premium Motor Spirit (PMS) consumption.

The Nigerian National Petroleum Corporation (NNPC) has four refineries, Port Harcourt one and two (PHRC 1 and PHRC 11 ), and one each in Kaduna (KRPC) and Warri (WRPC). The refineries have a combined installed capacity of 445,000 barrels per day (bpd).

But the respective average capacity utilization during the month of October 2014 of the refineries were zero per cent for both KRPC and PHRC 1 and PHRC 11 and 1.42 per cent for WRPC. Also, average capacity utilization during the month of November was zero per cent for both KRPC and PHRC 1 and PHRC 11 and 0.76 per cent WRPC.

The refineries managed to record an average capacity utilization 4.19 per cent, 19.24 per cent and zero per cent for KRPC, PHRC 1 and PHRC 11 and WRPC respectively in December last year. According to the NNPC report released at the weekend, 1,044 thousand barrels of dry crude oil, condensate and slop was received by the three refineries, KRPC, PHRC 1 and PHRC 11 and WRPC. “With an opening stock of 2,933 thousand barrels, total crude oil available for processing was 3,977 thousand barrels out of which 1,396 thousand barrels was processed.

Total national domestic refining produced 165.54 thousand mt of finished and intermediate products. PPMC, which lifts products from the refineries evacuated 126.66 thousand mt of products”, it added. It said that altogether 10.63 mt of products was used by the three refineries as fuel and loss, consumption as fuel was 5.81 per cent while loss and flare accounted for 8.59 per cent of production.

The report disclosed that NNPC Retail Limited and Independent Petroleum Products Marketing Companies distributed about 406.15 million litres of various petroleum products in the 36 States and FCT in November 2014. “This shows an increase of 152.55 million litres or 60.15 per cent when compared with the total volume distributed in November 2014 (253.60 million litres).

The NNPC Retail Limited distributed 170.36 million litres (41.94 per cent of the total sales) of petroleum products, while the Independent Marketing Companies distributed 235.79 million litres (58.06 per cent). “Distribution by product shows, Premium Motor Spirit (PMS) had the highest figure of 380.41 million litres (93.66 per centt) of the total reflecting average daily sales of 12.27 million litres.

This was followed by . Automotive Gas Oil (AGO) with total sales figure of 14.93 million litres (3.68 per cent) averaging 0.48 million litres per day. Household Kerosene (HHK) came third in the petroleum products distribution slate with total figure 7.56 million litres (1.86 per cent), giving an average daily figure of 0.24 million litres. Low Pour Fuel (LPFO) and Others constituted the remaining part of the distribution”.

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