Kachikwu to Launch Downstream Petroleum Infrastructure Rebirth Plan

Kachikwu to Launch Downstream Petroleum Infrastructure Rebirth Plan
Dr. Ibe Emmanuel Kachikwu
  • Says Nigeria plans to be Africa’s refinery hub

The Minister of State for Petroleum, Dr. Ibe Kachikwu, would soon launch a new plan to revive operational infrastructure in Nigeria’s downstream petroleum sector and open them up for private sector investments across their value chains, his aide Thursday disclosed to media source.

Speaking to media in Abuja as part of a follow up on Nigeria’s recent signing of a Memorandum of Understanding (MoU) with the Niger Republic to build a 150,000 barrels per day capacity refinery at a Katsina State border town between both countries, Kachikwu’s Senior Technical Adviser (STA) on refineries and downstream infrastructure, Mr. Rabiu Suleiman, said the rebirth plan would among other things, also consider how best to utilise the various downstream assets of the Nigerian National Petroleum Corporation (NNPC) that are idle.

He noted that the country’s downstream sector was not in a good shape, and “that is why going forward, the Minister of State for Petroleum Resources is planning to launch the downstream infrastructure rebirth for the country, where we will look at various infrastructure of the downstream – pipelines, tank farms and all other facilities – how adequate are they for this country”.

He said the plan would determine the infrastructure deficiencies and how to optimise the utilisation of those ones that are currently redundant.

It would also consider necessary investments that are needed from private investors to enhance and close the gap of infrastructure and open up the place so that people could build their own pipelines and charge tariffs.

According to him, the rebirth plan would ensure that marketers could put their products into somebody else’s pipeline, move and receive them elsewhere.

“These are all on the table, we are discussing them and planning to see how we can launch the new infrastructure rebirth for the country,” Suleiman said.

He equally suggested the plan would consider the best models to get downstream assets owned and operated by the NNPC, albeit inefficiently, and which have been idle, to get them working again.

He said: “Why should we have a depot that is not utilised or has not seen products for eight months? Can we commercialise that? These are all discussions that are going on.

“All those idle NNPC assets, how do we optimise the utilisation either by way of commercialising them or making sure the NNPC set up a commercial outfit that will optimise the utilisation and retain the proceeds within the NNPC because it is assets. These are all things that we are putting forward to see how we can develop all the infrastructure of downstream.”

Also speaking on the planned border refinery, Suleiman, who is leading the project’s technical committee, explained it was in line with Nigeria’s strategy to become a hub for refined petroleum products in Africa.

He reiterated that the project would be private sector financed with no financial commitments from the governments of both countries, adding, however, that the NNPC and its Nigerien counterpart might be allowed to take minor strategic shareholdings in the project.

He explained: “It is a competitive world. Nigeria has the intention without excuse to be the hub of hydrocarbon business in Africa and therefore any opportunity that will give us that unique position to be the hub, we will grab it because it has a potential of business activities in all aspects of life.

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