FG Grants Approval for New 10,000 BPD Refinery in Delta

The federal government has approved the construction of a new 10,000 barrels per day (BPD) refinery in Delta State, in a step towards expanding the country’s refining capacity.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) granted the approval to MRO Energy Limited, a local energy firm, for the establishment of the refinery in Imode, Ughelli.

On Tuesday, the NMDPRA announced via its official X (formerly Twitter) handle that its Chief Executive, Farouk Ahmed, had presented the Licence to establish the refinery to MRO Energy Limited, signalling the start of the project.

This new development comes just two months after a similar approval was granted to Process Design and Development Limited for the construction of a larger 27,000 BPD refinery in Dole-Wure, Gombe State. With these new projects, Nigeria is set to increase its refining capacity, which currently stands at around 11 modular and conventional refineries.

Earlier this month, the Petroleum Products Retail Outlets Owners Association of Nigeria also revealed plans to build a new refinery with an initial capacity of 50,000 BPD, reflecting the growing interest in local refining despite ongoing challenges.

However, many of the country’s existing refineries remain underutilised or non-operational. While Nigeria has the potential to meet its domestic refining targets, much of its refining capacity is not fully functional. The Nigerian Upstream Petroleum Regulatory Commission has set a goal of refining 770,500 BPD locally, a figure that will require significant investments in existing and new infrastructure.

Stakeholders say the country’s ongoing efforts to ramp up local refining production are crucial to reducing dependence on imported refined products, improving energy security, and boosting the nation’s economy.