Mkpoikana Udoma 08 February 2017, Sweetcrude, Port Harcourt – Managing Director of the Port Harcourt Refining Company, PHRC, Dr. Bafred Enjugu, has said that the company could generate N1.3 trillion in revenue annually if operated at 100 percent capacity.
But he said the refinery was currently operating at 60 percent capacity and would generate N1.18 trillion from petroleum products, including the premium motor spirit, PMS, also known as petrol; and dual purpose kerosene, DPK, more popularly known as kerosene.
According to him, N152 billion revenue is projected for 2017 from PMS, N133 billion from DPK, and N833 billion from intermediate petroleum products, such as propylene etc.
“The Port Harcourt Refining Company is a goldmine that can churn out about N1.3 trillion annually if we are in full operation. We are looking at 100.5 capacity refinery. We intend to upgrade our facilities”, he said.
The refinery recently commenced production of kerosene, petrol and diesel, and Enjugu said plans were underway for the production of aviation fuel.
The PHRC boss, at a media roundtable in Port Harcourt, also spoke on why modular refinery would not work in Nigeria.
Enjugu, who explained that modular refineries do not have the capacity for secondary processes, said they have the capacity for only primary processes which are PMS, DPK and Automotive Gas Oil, AGO, or diesel, whereas there are other secondary processes that could be processed from crude oil such as fertiliser, demineralised water, hydrogen, nitrogen, potable water, amongst others.
The PHRC boss wondered what would happened to the secondary processes, adding that the profit margin for modular refineries was slim.
“They (modular refineries) do not have secondary processes. So, I really got worried about what happens to other by-products.
“In the business of refining, if you don’t increase your capacity you will not get your profit. Modular refineries cannot make profit at 1,000 barrels per day. They can only start making profit when they can refine up to 5,000bpd and above,” he said.