...build gas hubs
The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed a Memorandum of Understanding (MoU) with two Chinese companies to fast-track the completion, operation, and expansion of Warri and Port Harcourt refineries, as part of efforts to restore domestic refining and cut reliance on fuel imports.
The agreement was signed on Thursday, April 30, 2026, in Jiaxing City, China, by NNPC Ltd Group CEO Engr. Bashir Bayo Ojulari; Sanjiang Chemical Company Limited Chairman Guan Jianzhong; and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd Chairman Bill Bi.
Under the proposed Technical Equity Partnership, the Chinese firms will work with NNPC to complete outstanding rehabilitation at both refineries and manage operations to deliver sustainable, best-in-class performance. Planned upgrades will lift product quality to cleaner, more profitable standards in line with global specifications.
The MoU also covers expansion of petrochemical capacity and the development of co-located, gas-based industrial hubs to harness downstream opportunities from the refineries. This would link crude refining to gas processing and manufacturing, potentially creating new revenue streams and jobs.
Speaking after the signing, Ojulari called the MoU a “significant milestone” following more than six months of technical and management-level engagement between NNPC and the Chinese partners.
“All parties recognise mutually beneficial opportunities for the development and long-term sustainable profitability of NNPC’s refining assets in Nigeria, and the collective weight required for success,” he said.
Ojulari added that the agreement marks a key step toward identifying technical equity partners to restart and expand NNPC’s refineries, while exploring opportunities in co-located petrochemicals and gas-based industries.
NNPC Limited noted that the MoU reflects shared intent to progress discussions in good faith, with any definitive arrangements subject to customary approvals.
Warri Refining and Petrochemical Company has a 125,000 bpd co-located with a modern petrochemical plant producing premium carbon black and polypropylene pellets. The Port Harcourt Refining Company has two plants with a combined capacity of 210,000 barrels per day. Both have operated far below capacity for over two decades due to poor maintenance, pipeline vandalism, and funding gaps.
Multiple rehabilitation contracts have been awarded since 2019. The Port Harcourt refinery began phased restart in December 2023, with mechanical completion announced for Area 5 – the old Port Harcourt Refinery. Warri refinery also saw rehabilitation work commence under Daewoo E&C. Despite these efforts, output has remained inconsistent, forcing Nigeria to continue importing over 90% of its refined products.
The Federal Government has repeatedly set deadlines to end fuel imports, with domestic refining seen as critical to easing forex pressure and stabilizing pump prices after the 2023 subsidy removal.
Sanjiang Chemical is a major Chinese player in petrochemicals and refining technology, while Xinganchen operates industrial parks integrating energy and manufacturing.
NNPC’s partnership model mirrors recent moves in the sector to bring in technical operators with equity stakes, shifting from pure EPC contracts to performance-linked partnerships.
If finalized, the deal would be one of the largest foreign technical partnerships in Nigeria’s downstream sector since the Dangote Refinery came online.
The deal is also expected to create thousands of employment opportunities by tapping from the highly skilled and experienced oil and gas technicians in the country as well as support businesses.