FG Approves License For 10,000 Barrels Per Day Refinery In Delta State

Learn about the Federal Government’s recent approval of a 10,000 barrels per day refinery in Delta State by MRO Energy Limited, adding to Nigeria’s refining capacity.

The Federal Government of Nigeria has approved a new milestone in the nation’s energy sector by granting a license for the construction of a refinery in Delta State. The license, issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), was awarded to MRO Energy Limited for a 10,000 Barrels Per Stream Day (BPSD) refinery located in Imode, Ughelli.

This announcement follows the recent approval of a 27,000 BPSD refinery in Dole-Wure, Akko area of Gombe State, issued to Process Design and Development Limited. The NMDPRA shared the development on its official X (formerly Twitter) handle, with the Authority Chief Executive, Engineer Farouk Ahmed, presenting the license to MRO Energy Limited.

Boost to Nigeria’s Refining Capacity

This latest refinery adds to Nigeria’s growing list of modular and conventional refineries, bringing the official count to approximately 11. Despite the promising strides in refinery approvals, the nation continues to grapple with challenges, as many existing refineries operate below capacity or remain non-functional.

Earlier this month, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) partnered with stakeholders to establish a new refinery with an initial production capacity of 50,000 barrels per day, further signaling optimism for the sector.

To bolster domestic refining, the Nigerian Upstream Petroleum Regulatory Commission has set a production benchmark of 770,500 barrels of oil per day for the nation’s refineries.

Conclusion

The approval of this new refinery in Delta State reflects the government’s commitment to improving Nigeria’s refining capacity and reducing dependency on imported petroleum products. However, operational efficiency and functionality remain critical to achieving long-term success in the sector.