http://allafrica.com/stories/200910280699.htmlPipelines and Products Marketing Company (PPMC) of the Nigerian National Petroleum Corporation (NNPC) has been working tirelessly to fix the sabotaged Chanomi Creek pipleline wich connects crude oil to both the Warri and Kaduna refineries.
Two refineries in Port Harcourt are currently in operation with a capacity of around 210,000 barrels per day, according to NNPC.
Warri Refinery has installed capacity of 125,000 bpd while Kaduna Refinery has a capacity of 110,000 bpd. Both refineries are fed by Chanomi Creek crude oil pipeline from Escravos oil fields.
Nigeria's refineries have a total nameplate capacity of 445,000 bpd but have never operated at full capacity. Even if they did, they would produce only 18 million litres of petrol out of estimated average peak daily demand of 32 million litres.
http://www.businessdayonline.com/index.php?option=com_content&view=article&id=3203:nigerian-refineries-history-problems-and-possible-solutions-1&catid=67:oil&Itemid=307Nigerian Refineries: History, problems and possible solutions (1)"Two oil marketing companies in Nigeria , Shell and British Petroleum, BP, formed a 50/50 joint venture refining company in Nigeria , the Nigerian Petroleum Refining (NPRC) in 1960.
The NPRC built a 38,000b/d petroleum refinery at Alesa-Eleme, near Port Harcourt to refine local crude oil into five petroleum fuel products. Construction of the refinery commenced in 1963 and production started two years later, in 1965."
"The refinery was de-bottlenecked in 1973, in order to increase its crude oil processing capacity from 38,000b/d to 60,000b/d. The domestic demand for petroleum products which steadily increased was satisfied by the NPRC refinery for about 8 to 10 years."
"The acute and prolonged nationwide shortage of refinery products, especially petrol, started between 1973 and 1974. These shortages resulted from several factors but were generally due to the sudden sharp increases in demand. The main reasons for the high demand were attributed to a considerable increase in the economic activities following the end of the Nigerian Civil war."
"Purchase of all types of vehicles, especially ‘tokunbo’ cars, electrical and electronic household goods sky-rocketed. The domestic demand for petrol more than doubled. Electrical power consumption also sharply increased nationwide.
Feasibility studies were first undertaken by BEICIP, an international oil and gas consulting firm from Paris , in 1974 for the Federal Government. The objectives were to establish the demand and consumption patterns of petroleum products. These studies were also used to determine the size of a new refinery to be constructed. Following a tendering exercise involving international engineering contractors, a contract was awarded to Snamprogetti Spa of Milan , Italy , in 1975. The contract was for the design, procurement and construction of a new grassroots petroleum refinery in Warri. The design capacity of the refinery was 100,000 b/d, and the lump sum cost was $478 million, for project duration of 30 months."
"A second new refinery was planned for the production of lubricating oil products, waxes and asphalt (for the road projects). This refinery which was located in Kaduna consisted of two refining streams, (50,000 b/d fuels units) and (50,000 b/d lubes, waxes Asphalt plants). The contract for the construction of the Kaduna Refinery was awarded in 1976 to Chiyoda Engineering and Construction Company of Japan, at the cost $525 million, for a project completion period of 36 months. The refinery was completed on schedule and was commissioned in later 1979. The existing products pipeline linking Warri Refinery to Kaduna was converted to pump crude oils for supply to the new Kaduna Refinery."
"By 1980, with the old Port Harcourt , Warri and Kaduna refineries in operation, there was still an appreciable level of importation of petroleum products to augment domestic production from the three refineries. A review of the old study was conducted to update the demand and the pattern of consumption to cover the next period of 10 years.
This was also to determine the optimum size and location for an export oriented refinery, which would also supply the domestic market as required. The several options considered included, new refineries and/or expansion of existing plants. The Federal Government decided to expand the capacities of the fuels units in the existing refineries at Warri and Kaduna by “de-bottlenecking.”
The de-bottlenecking route was quicker by capacity increases were moderate. The de-bottlenecking projects were completed in 1985. The new capacities at Warri Refinery and Kaduna Refinery became 125,000b/d and 110,000b/d respectively. In addition, a new grassroots refinery with a capacity of 150,000 b/d would be constructed adjacent to the existing refinery at Port Harcourt . The total additional refining capacity added from the result of the new study became 185, 000 b/d. this would bring the total refining capacity in Nigeria on completion of the projects in 1989 to 445,000b/d, which is still the current total installed refining capacity in Nigeria.
The new Port Harcourt refinery with a capacity of 150,000b/d was designed to include facilities to export products in excess of domestic demand. The contract for the design and construction was awarded to a consortium of JGC Corporation/Marubeni Corporation both of Japan and Spibatignolles of France in October 1985 at a total cost equivalent of US$850 million. The construction was completed and the refinery was successfully commissioned in October 1989."
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