NNPC: Why We Want Alternative Crude Source for Kaduna Refinery

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By Chineme Okafor in Abuja

The Nigerian National Petroleum Corporation (NNPC) has said it decided to look for an alternative crude oil supply source for its Kaduna Refinery because pipelines that supply itscrude oil from the Niger Delta are often destroyed by vandals.

The corporation in a statement from its Group General Manager, Public Affairs Division, Mr. Ndu Ughamadu, yesterday in Abuja, quoted its Group Managing Director, Dr. Maikanti Baru, to have said this, and that a 1,000 kilometres crude oil pipeline from Niger Republic to Kaduna would be built.

Baru, according to the statement also said the NNPC was committed to the upgrade and expansion of the Kaduna Refinery in line with his 12 key business focus areas in order to return it to the path of growth and profitability.

According to the statement, he said this during a town hall meeting with management and staff of the refinery in Kaduna.

He stated that efforts were ongoing to explore the possibilities of piping crude oil from Niger Republic to the refinery, adding that President Muhammadu Buhari was personally committed to this.

According to him, it was important to explore alternative crude oil supply to Kaduna Refinery because it has been affected by vandalism of pipelines and obsolescence.

He said the initiative would reduce downtime of the plant and ensure optimal utilisation.

“Due to challenges with the aged refinery and crude oil pipelines that had been breached severally, the operations of the refinery has been epileptic.

“Therefore we are determined to resolve through various intervention methods including evaluation of alternative crude oil supply from Niger Republic through building pipelines of over 1,000 kilometers from Agadez to Kaduna. That efforts is being championed by the president,” Baru said.

The corporation, he noted, had already started engagements with the Nigerien Minister of Petroleum and the Chinese that are operating the field at Agadez.

He also promised to drive the energy supply project to power industries in Kaduna by ensuring the completion of the Ajaokuta-Abuja-Kaduna-Kano (AKK) gas pipeline.

The Managing Director of the refinery, Idi Mukhtar was also quoted to have said the Fluid Cracking Catalytic Unit (FCCU) of the plant was restreamed in June.

Mukhtar said: “The Kerosene Hydrotreating Unit (KHU) rehabilitation is ongoing with the equipment overhaul and integrity checks. When operational the margin of value addition on kerosene and Aviation Turbine Kerosene (ATK) which will provide millions of naira in revenue, even at a throughput of 60 per cent.”