Aradel Holdings Plc is preparing to commence petrol production at its modular refinery in Rivers State in 2027, as the company positions itself to take advantage of Nigeria’s deregulated downstream petroleum market.
The company said the decision was influenced by the removal of fuel subsidies in 2023, which has improved the commercial outlook for locally produced petrol and created stronger incentives for domestic refining.
Temitayo Ogunbanjo, who oversees Aradel’s refining operations, said the deregulation of the petroleum market had created a viable opportunity for the company to expand its refining activities into petrol production. He made the disclosure on the sidelines of a conference in Abuja.
Aradel currently operates an 11,000-barrel-per-day modular refinery in Rivers State. The facility presently produces products including kerosene, diesel, gas oil and naphtha.
With plans to introduce petrol production, the company is also evaluating possible expansion of the refinery and reviewing crude supply arrangements required to support increased processing capacity. It is equally assessing export and logistics options as part of its broader downstream strategy.
Beyond petrol, Aradel is considering investments in aviation fuel production, with potential plans to target export markets in Europe. The proposed expansion could therefore strengthen the company’s position across both Nigeria’s domestic energy market and the international refined-products market.
Aradel has not disclosed the amount it intends to invest in the proposed petrol production unit or any wider refinery expansion. The company is expected to develop the financial and technical details as engineering studies progress over the coming year.
The company also noted that stronger crude oil prices have continued to support earnings from its upstream operations, providing a potentially favourable financial environment for its planned downstream investments.
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The proposed petrol production is part of Aradel’s broader strategy to increase its refining capacity and benefit from opportunities emerging from Nigeria’s changing petroleum market. If successfully implemented, the project could contribute to domestic fuel supply while reducing reliance on imported petrol.
