The Warri Refining and Petrochemical Company (WRPC) is set to resume loading Premium Motor Spirit (PMS), commonly known as petrol, by February 2025. This development follows the recent rehabilitation of the refinery, which has already begun producing and loading other petroleum products such as Automotive Gas Oil (diesel) and kerosene.
Current Operations at Warri Refinery
As of early January 2025, the WRPC has commenced limited operations under the management of the Nigerian National Petroleum Company Limited (NNPCL). The refinery resumed operations on December 30, 2024, but is not yet functioning at full capacity. According to Harry Okenini, Chairman of the Delta State chapter of the Independent Petroleum Marketers Association of Nigeria (IPMAN), while the plant is operational, it is currently only producing diesel and kerosene. He expressed optimism about the upcoming production of petrol and other products in February.
Production Status
- Current Products: The refinery is presently producing:
- Automotive Gas Oil (Diesel)
- Dual Purpose Kerosene
- Expected Products: By February, there are anticipations for:
- Premium Motor Spirit (Petrol)
- Cooking Gas
- Other petroleum products
Despite these positive developments, sources within the refinery indicate that only one of the three operational units is currently functional. This unit is capable of producing diesel and kerosene but not petrol. The second unit, which is more complex, needs to be operational to begin petrol production.
Industry Context
The Warri refinery’s return to partial operation is significant in the context of Nigeria’s broader oil industry challenges. Historically, Nigeria has struggled with refining capacity, leading to heavy reliance on imported petroleum products. The Dangote Refinery, with a capacity of 500,000 barrels per day, remains the only facility currently producing PMS at scale. This highlights the critical need for local refineries like WRPC to ramp up production to meet domestic demand.
Challenges Ahead
While the resumption of operations at WRPC is a positive step, several challenges remain:
- Full Capacity Operations: For WRPC to effectively contribute to Nigeria’s fuel supply, all three units must be operational. Currently, only one unit is functioning.
- Infrastructure and Investment: Industry experts have noted that additional investments and infrastructural improvements are necessary for WRPC to reach its full potential.
- Market Demand: There is a growing demand for petrol in Nigeria, and marketers are eager for the refinery to begin loading PMS to alleviate some of the pressure caused by import dependencies.
Marketers’ Perspectives
Marketers have expressed cautious optimism regarding the refinery’s operations. They are actively monitoring developments and preparing for increased loading activities once petrol production commences. According to Israel Omokere, National Chairman of the Surface Tank and Kerosene Peddlers branch of NUPENG, there is hope that PMS production will soon be added to the list of products being loaded from the refinery.
Anticipated Impact
The resumption of petrol loading at Warri refinery could have several implications:
- Reduced Import Dependency: Increased local production may help reduce Nigeria’s reliance on imported fuel.
- Market Stability: A stable supply from local refineries could help stabilize fuel prices in Nigeria.
- Economic Benefits: Local refining can create jobs and stimulate economic activity within surrounding communities.
In conclusion, while Warri Refinery’s anticipated return to petrol loading in February marks a significant milestone for Nigeria’s oil sector, it also underscores the ongoing challenges that need addressing to ensure sustainable operations and meet domestic fuel demands effectively.