Ibe Kachikwu Reinstates 46-km Escravos-Warri Pipeline

During the reinstatement of the 46-km Escravos-Warri pipeline, the Minister of State for Petroleum, Ibe Kachikwu, has said the prolonged fuel shortages in major cities across the country would progressively ease off with the coming on stream of refineries, which requires about $700 million to upgrade and operate at 90 per cent capacity.

According to him, the long-term solutions would take time because there is a lot of policy issues coming in to ensure that the fuel shortage issue is resolved.

“When the upgrade and repairs, led by the foreign investors, with our joint team, are concluded, our capacity will move from about 50 per cent to about 90 per cent, resulting in movement from 12 million litres to slightly in excess of 20 million litres production per day. The co-located refineries that we have also advertised, which will be private sector-led, by the time they are attained in about two years, there will be excess of 750,000 barrels refined petroleum production capacity per day.

“Our hope is that by 2018, fuel importation will be reduced by at least 60 per cent, because of the upgrade that would have taken place. By 2019, when the co-located refineries are in place, we will actually be exiting importation and begin to export refined petroleum products. That is the strategic way. That is what we are working on.”

Kachikwu also revealed that the Warri and Kaduna refineries are now receiving crude simultaneously for the first time in many years. While the Kaduna refinery will start production at the end of the month, which means that the major crude pipelines in the country will be working at the same time.

“The challenge of this country is the challenge of focus and stewardship. For the first time in many years the three refineries are going to be working and it will help in a great deal with the issue of fuel supply and distribution across the country and it will go a long way to manage the fuel crisis,” said Kachikwu.

On that note, the minister bade Nigerians to be more patient as the NNPC was working hard to end fuel scarcity across the country.

He stated: “I appreciate the patience of Nigerians and I am committed and focused to make petrol available to all nooks and crannies of Nigeria.”