DPR urges investors to embrace modular refinery option to end fuel scarcity

The Department of Petroleum Resources (DPR) has advised investors in the oil and gas sector to embrace small refineries in order to put an end to fuel scarcity in the country.

Mr Alphonsus Mudi, the Deputy Director Downstream Sector of DPR, gave the advice during the NewsDirect Quarterly Roundtable Conference on Nigerian Economy in Lagos on Sunday.

The theme of the programme was “Setting Agenda For New Government On Private Refineries, Power Supply, Indigenous Participation and Financing”.

Mudi described investments in modular refineries as the new way to go in order to stop importation of petroleum products.

He said that a modular refinery was cheaper and was capable of being moved from one place to another.

The deputy director said that modular refineries were capable of handling refining capacity of between 10,000 and 35,000 barrels of crude oil per day.

He lamented that out of 18 investors that had license to operate refineries in 2007, only one of them was producing today.

“Only the Niger Delta Petroleum Resources (NDPC) was able to set up its refinery with a total capacity of 1,000 barrels per day.

“But what they are producing is for their consumption, they are refining only diesel.

“The other 17 investors said that they were having many challenges, including funding, securing crude for use and government incentives.

“We tried to assist them by directing them to where they could get crude oil, but unfortunately, they could only get it at the world price.

“But till today, we have not seen them again,” he said.