Kaduna Refining And Petrochemical Company (KRPC)

Address Of Enterprise
KM 16 Kachia Road
P.M.B 2252
Kaduna

COMPANY PROFILE

The refinery was commissioned in 1980 to supply petroleum products to Northern Nigeria with a capacity of 50,000 B/D. In 1983, the capacity was expanded to 100,000 B/D by adding a second 50,000 B/D crude train dedicated to the production of lubricating oils (lubes). In 1986, the capacity of the first crude train was expanded to 60,000 B/D. The expansions have increased the current nameplate capacity of the refinery to 110,000 B/D.

Main Plants

Crude Distillation Unit CDU – 1 (Fuels)

CDU – 1 feeds the fuels train of the refinery. It was designed to process 50,000 B/D of Nigerian crude (a 50/50 blend of Escravos and Forcados) and later revamped to 60, 000 by adding a pre-flash column and a second heater. The unit is designed to late 1970s standards, which make it an energy efficient design.

Crude Distillation Unit CDU – 2 (Lubes)

CDU – 2 feeds the lube. CDU –2 is currently not functioning because the utilities performance is not up to par and cannot support the running of the unit.

Petrochemicals Unit

This unit consists of a production complex with a target of 91 tonnes per day of Linear Alkly Benzene (LAB), which is the major feedstock for the production of detergents. It was commissioned in 1988 and uses UOP process technologies.

Facilities

The main refining units and their capacities are shown below:

PROCESSUNITCAPACITY
Crude Distillation, FuelsCDU – 160,000 B/D
Vacuum Distillation, FuelsVDU – 115,200 B/D
Fluid Catalytic CrackingFCCU21,000 B/D
Naptha HydrotreatingNHU24,000 B/D
Kerosene HydrotreatingKHT17,500 B/D
Catalytic ReformingCRU17,500 B/D
Sulphur RecoverySRU10 Tonnes/day
Crude Distillation, LubesCDU –250,000 B/D
Vacuum Distillation, LubesVDU – 223,000 B/D
Propane DeasphaltingPDU7,860 B/D
Furfural ExtractionFEU12,450 B/D
MEK DewaxingMDU5,300 – 9,400 (depending on what base oil is being produced)
Wax DeoilingWHU75 Tonnes/day
Asphalt BlowingABU6,000 B/D
Linear Alkyl BenzeneLAB91 tonnes/day
Utilities

The refinery has all the utilities (on site) required for its operation. The installed capacities of the utility plants are shown below:

UTILITYCAPACITY
Electricity – Steam Turbines4 X 14 MW
Steam Boilers5 X 120 t/hr @ 42 bar
Raw water treatment750 m3/hr
Cooling Water18,100 m3/hr
Demineralised Water340 m3/hr
Nitrogen920 Nm3/hr
Instrument Air3 X 6000 Nm3/hr
Waste Water treatment plantN/A
PRODUCTS

The refinery produces various yields of crude oil by products as shown below:

LPG      Gasoline           Jet/Kerosene    Gas-oil/Diesel   Fuel Oil

Asphalt Lubricants        Waxes  LAB/Petrochemicals

PRODUCTS OUT OF KRPC 1999 – APRIL 4TH  2003
19992000200120022003
LPG9301601617165
PMS214170242810332100438275136341
HHK19384015026021302023261275123
AGO195180237910353730400447115828
LPFO38675041654065051053380082055

The above table shows 2003 production statistics till April 4th before the plants were shut down due to operational reasons.

From current Government pronouncements, Nigeria has embarked on the road to full petroleum products pricing liberalisation. This would allow adequate and fair returns on investment.

REFINERY PERFORMANCE

The refinery has a capacity of 110,00 B/D. However since 1983 it has never achieved full throughput and production has declined apart from the early 1990’s, which saw a brief upswing in production.

The throughput for the refinery in 2002 was about 40,000 B/D as against the nameplate capacity of 110,000 B/D, which translates to about a 36% capacity utilization.

PLANT CAPACITY UTILISATION 1999 – APRIL 4TH  2003
19992000200120022003
CDU – 146.0345.6660.963.3859.42
CDU – 23.420014.6624.45
NHU31.735.6541.5548.8947.45
CRU22.4629.9746.3944.9847.66

The inefficient operation of the refinery could be attributed to these main issues listed below solving of which would ensure that the refinery could be run at an optimum capacity.

  • Crude oil is currently being supplied by pipeline from the Escravos terminal, which is located along the volatile Niger Delta area.
  • Refurbishing of the existing utilities of the plant so that they would perform at optimum and meet all the operational requirements of the refinery.
Five (5) Year Financial Summary  (All Figures in N)
31st December19981999200020012002
Turnover2,357,471,0501,975,442,9691,770,275,4842,457,111,7993,022,148,400
 
(Deficit) for the year(222,079,124)(6,643,660,638)(7,397,333,812)(4,255,220,472)(7,319,221,190)
      
Earnings per share(44.42)(1,328.73)(1,479.46)(851)(1,464)

With the size of the whole northern region of Nigeria and the countries that border the region (Niger and Chad) the Kaduna Refinery has the market to ensure that all it’s output is consumed. i.e. the Nigerian market would consume all the PMS and some of the AGO, and the other countries consuming other products.

The Refinery operating at 90 – 95% capacity and with current crude prices is expected to recoup its investment and make profits in just a few years of operations