(Ecofin Agency) - Two private indigenous companies have been selected by the Nigerian government to construct 217,000 barrels per day refineries in Port Harcourt and Warri under a new co-location concept.

The concept initiated by the Minister of State for Petroleum Resources, Emmanuel Kachikwu, aims to ensure that new refineries are established to share infrastructure with the country’s existing refineries in Kaduna, Port Harcourt and Warri, and boost domestic petroleum products refining capacity.

Speaking at a conference in Lagos on Thursday, the Chief Operating Officer in charge of Refining and Petrochemical at the NNPC, Anibor Kragha, explained that ten investors had shown interest in constructing the new refineries but only two were selected.

One of the companies, LRR Group, will construct a 117,000 barrels per day refinery close to the Warri refinery, while the other firm, JALEMBA, will build a 100,000 bpd refinery near the Port Harcourt refinery.

“The reality of the situation is that studies have been done and by 2025, the actual projected petrol consumption in Nigeria is estimated to be about 41 million litres per day. Now the three refineries at full capacity will deliver about 50% of that. Dangote Refinery, I understand, will deliver about 95% of that when it comes on stream. That is where the whole idea of becoming a net exporter of petrol is coming from,” Kragha said.

He added that the corporation is also in search of financiers with technical expertise to renovate existing refineries within the next 24 months.

Modalities are also being worked out by the federal government to offer financial support to operators licenced to build modular refineries in the country.

Anita Fatunji