Nigeria’s WalterSmith to commission 5000 bpd modular refinery

Indigenous oil and gas company, WalterSmith Group, has made a significant stride in Nigeria's energy sector by launching a 5000 barrel-per-day modular refinery near the Ibigwe flow station. The refinery, which commenced commercial operations on November 3rd, is expected to play a vital role in delivering refined petroleum products into both the domestic and regional markets. Abdulrazaq Isa, Chairman of WalterSmith Group, shared insights into the project in an exclusive interview with CNBC Africa's Esther Awoniyi. Abdulrazaq revealed that the refinery has already sold over 2 million litres of products and is currently operating at 50% capacity. The company aims to reach full production capacity in the next two weeks, further solidifying their position in the market. He highlighted the challenges faced due to COVID-19, causing delays in the project's timeline but expressed optimism about the current progress. One of the key aspects discussed was the crude supply for the refinery. Abdulrazaq mentioned that initially, the crude would come from their field in the marginal field where the refinery is located. They also have a partnership with CEPLAT and are in discussions to refine some of their crude as well. Furthermore, the company is engaging with other asset owners and the government to access additional feedstock for the future phases of the refinery. The Chairman provided insights into the refinery's annual projections and expansion plans, outlining three distinct phases of the project. The first phase, the 5000 bpd refinery, is set to deliver approximately 271 million litres of products annually, including diesel, kerosene, HFO, and NAFTA. The subsequent phases, a 25,000 bpd standalone condensate refinery, and a 20,000 bpd crude plant, aim to significantly increase the production capacity, delivering a total of 2.8 billion litres of various products into the market by the project's completion. Moreover, WalterSmith Group is eyeing the petrochemical sector for further growth, intending to develop an industrial park around the refinery location. The industrial park would attract companies using hydrocarbon products as feedstock, creating an industrial cluster that could reduce manufacturing costs and leverage Nigeria's recent accession to the African Continental Free Trade Agreement. Abdulrazaq emphasized that the modular refinery is a step towards Nigeria's energy independence and economic growth. Despite criticisms about the refinery's scale in comparison to the country's refining needs, he cited it as a proof of concept. The company's focus on the South-Eastern market demonstrates their confidence in meeting the region's energy demands and lessening Nigeria's reliance on imports, ultimately contributing to job creation and bolstering the economy. In conclusion, the WalterSmith Group's initiative signifies a positive development in Nigeria's energy landscape, paving the way for more indigenous companies to follow suit. By strategically approaching refining capacity in modules, the company sets a precedent for sustainable energy solutions and underscores the potential for reducing the country's dependence on imported products. As the refinery project progresses, it holds the promise of enhancing Nigeria's energy security and fostering economic advancement in the region.