NNPC advances rehab, expansion plans for idled refineries

Nigeria National Petroleum Corp. Ltd. (NNPC) has entered a memorandum of understanding (MOU) with China-based Sanjiang Chemical Co. Ltd. and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd. for collaboration via a potential technical equity partnership to support ongoing rehabilitation and expansion plans at two of its currently idled in-country refining complexes.

Announced in early May, the MOU’s proposed framework covers unspecified remaining rehabilitation works at subsidiary Warri Refining & Petrochemical Co. Ltd.’s (WRPC) 125,000-b/sd refinery in Nigeria’s Delta State and Port Harcourt Refining Co. Ltd.’s (PHRC) 60,000-b/sd hydroskimming refinery at Alesa-Eleme near Port Harcourt in Rivers State, NNPC said.

Alongside operating and maintenance activities to help the sites achieve best-in-class, sustainable performance, the MOU also outlines proposed expansions and upgrades at both refineries to enable production of cleaner, higher-valued products, according to the company.

While NNPC did not clarify the nature of expansion and upgrading plans for either of the refining sections of the sites, the operator said the potential collaboration with Sanjiang Chemical and and Xinganchen (Fuzhou) Industrial Park also would weigh options for expanding the two complex’s petrochemical capabilities, as well as future development of co-located, gas-based industrial hubs at the two locations.

NNPC said formal signing of the MOU follows more than 6 months of technical and management discussions with the two Chinese firms to develop a roadmap for restoring sustained, high-performance manufacturing operations at both sites.

The MOU comes as part of NNPC’s broader mission to identify potential privately held technical equity partners to help support rehabilitation and expansion of its existing but nonoperational refining infrastructure, which ideally would include a willingness to evaluate opportunities for adding co-located petrochemical production and gas-based industries at the sites, the operator said.

The agreement with Sanjiang Chemical and and Xinganchen (Fuzhou) Industrial Park follows NNPC’s announcement earlier this year that it was in the process of engaging partners to participate in revival of its state-owned refineries after the parent company’s decision to fully suspend operations of the dual-sited PHRC, WRPC, and the Kaduna Refining & Petrochemical Co. Ltd.-operated 110,000-b/sd refinery in Kaduna State became uneconomical amid a confluence of sustained commercial losses, increased operating costs, and lower capacity utilization at all four sites.

NNPC previously completed extensive rehabilitation works to achieve restart of the PHRC and WRPC refineries in 2024 ahead of their re-shuttering in 2025.