The Kaduna Refining and Petrochemical Company says the Federal Government will save over $5.33 million daily from fuel importation when the company hits 90 per cent production in 2016.
This was contained in the KRPC production report made available to the News Agency of Nigeria on Tuesday in Kaduna.
In the report, KRPC said that at 90 per cent production capacity, it would be able to release about five million litres of fuel products into the market.
According to the company, this will address the supply shortage in the northern region.
The company had announced that it would hit 90 per cent production capacity in March 2016 on completion of the ongoing Turn-Around Maintenance, which began in October 2014.
NAN reports that the KRPC, which has 110,000 barrels per day installed capacity, is currently operating at about 60 per cent output, with two production equipment restored after undergoing local maintenance.
The company said it would release about five million litres of locally refined fuel at the end of March 2016 when the maintenance was completed, thereby cutting the cost of fuel importation by the Federal Government.
A breakdown of the report indicates that government will save $1.892 million daily on importation of Premium Motor Spirit, also known as petrol, when it hits the 90 per cent production target in 2016.
The report added: “At the same 90 per cent output, KRPC will save $672,546 daily on importation of Kerosene and $1.86 million daily on the importation of diesel.
“The company will also save $176,727 daily on importation of LPG and $727,306 daily on importation of Fuel Oil.
“These represent a total savings of $5.33 million daily for fuel products only.”
The KRPC’s Manager, Production Programming and Quality Control, Shehu Malami, had recently said the refinery was expected to produce about 4.6million litres of PMS at 90 per cent capacity in 2016.
Malami said the company had resumed production at about 60 per cent and was currently producing 3,083,100 litres.
The official disclosed this in a paper: “KRPC Operations and Impact on the Economy,” presented on August 8 at a two-day annual Energy Correspondents Workshop in Kano.
According to him, the volume of Kerosene production will rise to 1,849,500 litres at 90 per cent capacity as against the current 1,233,000 litres production at 60 per cent capacity.
He added: “That of diesel is to hit 3,153,600 litres at 90 per cent as against 2,102,400 litres at current 60 per cent capacity.
“LPG will attain 486,000 litres at 90 per cent from its current 324,000 litres at 60 per cent capacity among other products.”
NAN.
Follow The Eagle Online Channel on WhatsApp
