Govt to save $5.33m daily from Kaduna refinery

There are indications that Nigeria may be saving about $5.33 million daily from the Kaduna refinery when it reaches capacity utilization of 90 percent production. The KRPC Managing Director, AlhajiSaiduAliyu Mohammed told Journalists at the opening of a workshop in Kaduna, said that the Kaduna Refinery plant Will be ready for operation after completion of its Turn Around Maintenance (TAM) by the end of this month.

He said the functionality of the refinery would ultimately reduce Nigeria’s dependence on fuel importation and save the country huge sum of money to the tune of $5.33 million daily. “Replacement of the weak segments the pipeline is ongoing. The repair work is expected to be completed on August 27, 2015, and thereafter, crude oil supply to KRPC would resume,” he said.

The Company’s Manager Production Programming and Quality Control, Alhaji Shehu Malali who spoke with Journalists on “KRPC Operations and Impact on the Economy”, pointed out that the plant will be overhauled and be put on stream to boost fuel supply in the country Malalisaid : “The impact of KRPC operations on the economy means that if the refinery operates at 90 percent capacity, it will save the nation $1.892 million from importation of Premium Motor Spirit (PMS).”

According to him, “at same 90 percent, KRPC will save $672,546 daily on importation of Kerosene,$1.86 million daily on import of diesel,$176,727 daily on importation of LPG and $727,306 million daily on import of Fuel Oil.” He also added that “the impact of KRPC operations on the economy means that, if the refinery operates at. 90 per cent capacity, it will save the nation 1.892 million daily on importation of Premium Motor Spirit (PMS) also known as petrol,” while pointing out that “this represents a total savings of $5.33 million daily for Fuel products only.”

Malami said the refinery is expected to produce 4,624,650 liters of PMS when it attains 90 per cent capacity in the first quota of 2016 as against its current 60 per cent status of 3,083,100 liters.

He argued that the volume of kerosene production will rise up to 1,849,500 liters at 90 per cent capacity as against current 1,233,000 liters production at 60 per cent capacity, stressing, “that of diesel is to hit 3,153,600 liters at 90 per cent, as against 2,102,400 liters at current 60 per cent capacity”.

“LPG will attain 486,000 litres at 90 per cent from its current 324,000 litres at 60 per cent capacity among other products”. Meanwhile, energy correspondents were conducted round the plant facilities at KRPC yesterday, to acquaint them of the state of the refinery and effort by the management to put the plant on stream for production.