OPAC Refineries, IPMAN Finalise Agreement to End Kerosene Scarcity Nationwide

Emmanuel Ugwu-Nwogo in Umuahia

The problem of kerosene scarcity may be nearing its end as the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the management of OPAC Refineries, Kwale, Delta State have signed agreement for the supply and distribution of the petroleum product across the country.

National President of IPMAN, Elder Chinedu Okoronkwo said the agreement, which was sealed on Monday, would require OPAC Refineries to supply Kerosene (DPK) to its members all over the country.

According to him, the partnership agreement was intended to bridge existing supply gaps thereby ameliorating the effects of shortage of kerosene in the country.

He noted that the impact of kerosene scarcity was already hurting most households, moreso as the cost of liquefied petroleum gas (LPG), Cooking Gas has continued to climb out of reach.

Okonkwo said that the agreement, which was signed on Monday, was expected to expected to come into effect immediately, adding that it represents, “one of the many ways IPMAN intends to provide a workable solution to the scarcity and price volatility of Kerosene across Nigeria.”

After four years of fine-tuning its refining capacity, OPAC Refineries had in August this year completed the first phase of its production and refining process followed with the production of the first set of refined products in its refinery in Kwale, Delta State.

Managing Director of OPAC Refineries, Momoh Jimah Oyarekhua said that having completed the first production process, the firm, which is a leading indigenous refining company was able to produce Diesel (AGO), Kerosene (DPKW, Fuel Oil-FO, and Naphtha – source of Premium Motor Spirit (PMS).

With this partnership and the successful test run of OPAC Refineries, it is expected that large volume of kerosene would be poured into the supply value chain to bridge the demand crisis nearing its peak.

It is also expected to cushion the effects of pre- Christmas season hike in demand and increase in prices of most commodities.

OPAC Refineries is build with the capacity to produce multiple primary products such as Diesel or Automotive Gas Oil (AGO), Kerosene (DPK), Light Fuel Oil (LFO), and Naphtha – source for Premium Motor Spirit (PMS).

As the first-of-its-kind modular refinery located in Umuseti, Kwale in Delta State, OPAC Refineries is equipped with a refining capacity of 10,000 barrels of crude oil per day, with plans for expansions and spread to different regions in Nigeria.

The company is rated as a very promising local oil & gas production infrastructure and top amongst the first indigenous modular refineries to significantly provide locally refined products at affordable cost.