Fuel scarcity: DPR suggests modular refineries

The Department of Petroleum Resources has called on stakeholders in the oil and gas sector to invest in the establishment of modular refineries as a solution to the persistent fuel scarcity bedevilling the country.

The DPR Director, Mr. George Osahon, said such investment was necessary in order to tackle the unending shortage in the supply of petroleum products to Nigerians.

Osahon, who spoke on Monday during a sensitisation road show on modular refinery initiative in Port Harcourt, described the investment in modular refineries as the new way to go in order to stop the importation of petroleum products.


Disclosing that the DPR was ready to issue licences to investors interested in building modular refineries, the DPR boss explained that modular refineries were capable of handling refining capacity of between 10,000 to 35,000 barrels of crude oil per day.

Represented at the event by Mr. Alfred Ohiani, the Deputy Director, Engineering and Standard of DPR, he pointed out that government could leverage on the idea to boost the supply of petroleum products.

“Government has tried many initiatives to see how it can increase the refining capacity within the country. So far, we only have about 445,000 barrels thereabout and we are producing more than 2 million barrels.

“So, if we have the refining capacity and we can refine as much as we need, there would be no reason for issues such as importing to augment what we have and the issue of shortages should not be coming in,” Osahon said.

He recalled that government had tried in the past to grant 18 companies licences to build a refinery, adding that the companies did achieve the objective.

According to him, government believed in the modular refinery initiative because of its capability of bringing an end to fuel scarcity and the importation of petroleum products.

On the funding of the construction of modular refineries in the country, Osahon pointed out that while investors should be able to fund the project, the Central Bank of Nigeria could also be involved in it.