The Federal Government has taken another step toward boosting Nigeria’s refining capacity with the approval of a licence for MRO Energy Limited to construct a new refinery.
The 10,000 barrels per stream day (bpsd) facility is set to be established at Imode in Ughelli, Delta State to address the country’s refining challenges.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced the development via its official X handle, confirming the presentation of the licence by the Authority Chief Executive, Farouk Ahmed.
“The authority Chief Executive, Farouk Ahmed, presented a Licence To Establish a 10,000 Barrels Per Stream Day Refinery at Imode In Ughelli, Delta State, to MRO Energy Limited,” the statement read.
This milestone comes just two months after the NMDPRA granted a licence to Process Design and Development Limited for a 27,000 barrels per day refinery in Dole-Wure, Akko, Gombe State.
This approval takes Nigeria’s modular and regular refineries to 11, Investors King reports.
The industry however continued to face operational hurdles with many facilities non-functional despite the rise in licence approvals.
Earlier this month, the Petroleum Products Retail Outlets Owners Association of Nigeria announced plans to establish a refinery with an initial capacity of 50,000 barrels per day in collaboration with its partners.
The new Delta State refinery is expected to play a critical role in improving local refining capacity, bolstering fuel availability, and fostering economic growth in the region.
By addressing the inefficiencies in Nigeria’s refining sector, the project aims to reduce the financial strain of fuel imports and support the country’s energy self-sufficiency.