Why Nigerian Refineries Are Producing Below Capacity

refineryThe Managing Director, Kaduna Refining and Petrochemical Company (KRPC), Alhaji Idi Mukhtar, has linked pipeline vandalism with the inability of the country’s refineries to meet up with local oil demand.

The KRPC boss made this known at the fourth edition of capacity building workshop for Energy correspondents in Kaduna on Friday.

Mukhtar, however, called for the establishment of 20-inch pipeline to optimize refining of crude to about 80 per cent.

He said, “What is of  strategic importance is the need to lay a new wider (20 inch) pipeline that will serve as a better alternative to the current 16 inch pipeline which is limited by its size and low integrity.

“In fact, if KRPC is set to achieve the target of operating at a minimum of 80 per cent throughput. The new pipeline is needed to ensure delivery of sufficient crude oil to meet the target”.

Mukhtar also advocated for framework that would regard the pipeline as “Military Zone” because of its strategic importance.

“A major challenge facing KRPC is the incessant vandalism on Warri–Kaduna pipeline and in fact it is one of the greatest threats to KRPC’s performance. This line needs to be highly secured to guarantee continuous supply of crude oil to KRPC”, he added.

Mr. Mukhtar also disclosed that the KRPC is working to reposition itself in line with the current administration’s desire to ensure efficiency and profitability in the oil sector.