ABSTRACT
Major infrastructural developments in the downstream sector in practical terms started in 1965 with the construction of the pioneer refinery at Alesa-Eleme in Port Harcourt. Thereafter, similar projects were executed at Warri and Kaduna as subsidiaries of NNPC. The downstream sector of the Nigerian petroleum industry has expanded significantly and prominent among these developments is the award of 18 licences to indigenous companies for the construction of private refineries.1 Subsequent sections of this chapter will discuss the establishment of the country’s refineries and petrochemical companies. This will provide an opportunity to evaluate the characteristics of some of the major NNPC assets in the downstream sector which can be identified as follows:
The Port Harcourt Refining Company Limited (PHRC) complex consists of the old refinery which has a capacity of 65,000 b/d and the new refinery which has a capacity of 150,000 b/d. The old refinery was constructed in 1965 and relies on the Crude Distillation Unit (CDU) and the Vacuum Distillation Unit (VDU) for the processing of crude oil. The zone covered by the old refinery is often referred to as Area 1. On the other hand, the new Port Harcourt refinery, which has a capacity of 150,000 b/d, was initiated in 1984 within proximate location of the old Port Harcourt refinery. This refinery was constructed by a consortium of companies, namely Spie Batignolles SA (France), Spie Batignolles Nigeria Limited, JGC and the Marubeni Corporation of Japan. The activities of the new Port Harcourt refinery commissioned in 1989 are located in Areas 2-5 as follows:2
Area 2
Area 2 as classified in the refining system consists of the Naphtha Hydrotreating Unit (NHU), Catalytic Reforming Unit (CRU) and Kero Hydrotreating Unit (KHU). The naphtha hydrotreating unit hydro-desulphurises the naphtha while the CRU is responsible for upgrading the naphtha to higher octane value reformate. In the KHU the kero product is upgraded to make it suitable for aviation fuel. The refinery system relies considerably on catalysts. Sometimes their value or catalytic power weakens, warranting a rejuvenation process. This process is carried out in the catalyst rejuvenation unit. The caustic treatment unit, hydrogen purification, water treatment and fuel gas vaporiser are all located in Area 2.
