NNPC Ltd Signs MoU with Chinese Partners to Revitalize Port Harcourt and Warri Refineries
On 30 April 2026, Nigeria’s state‑owned oil company NNPC Ltd. announced the signing of a Memorandum of Understanding (MoU) with two Chinese enterprises — Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co. Ltd. — aimed at exploring a technical equity partnership to complete, operate, and modernize the Port Harcourt and Warri refineries.
The ceremony took place in Jiaxing City, China, and was attended by Engr. Bashir Bayo Ojulari, Group Chief Executive Officer of NNPC Ltd.; Guan Jianzhong, Chairman of Sanjiang Chemical; and Bill Bi, Chairman of Xinganchen (Fuzhou) Industrial Park.
Details of the Agreement
- Date and venue: 30 April 2026, Jiaxing City, China.
- Signatories: Engr. Bashir Bayo Ojulari (NNPC Ltd.), Guan Jianzhong (Sanjiang Chemical), Bill Bi (Xinganchen Fuzhou).
- Scope: Joint work on completing outstanding construction, ensuring reliable operation and maintenance, and pursuing expansions that meet world‑class, sustainable performance standards.
- Additional focus: Development of petro‑chemical units and gas‑based industrial hubs to unlock downstream value from associated gas.
The MoU reflects a shared intent to continue negotiations in good faith, with any definitive agreements contingent upon customary regulatory approvals and further due‑diligence.
Strategic Objectives
NNPC Ltd. has long struggled to bring its refineries to full capacity. The Port Harcourt and Warri complexes, each designed for 210,000 barrels per day (bpd) and 125,000 bpd respectively, have operated well below name‑plate capacity for years due to aging infrastructure, funding gaps, and technical challenges.
Through this partnership, NNPC aims to:
- Accelerate completion of pending civil, mechanical, and electrical works.
- Introduce modern process technologies that improve energy efficiency and reduce emissions.
- Upgrade product slates to meet cleaner fuel specifications (e.g., Euro V diesel, low‑sulphur gasoline).
- Integrate petro‑chemical units that can convert naphtha and other streams into polymers, solvents, and specialty chemicals.
- Develop gas‑based industrial parks that utilize associated gas for power generation, methanol synthesis, or fertilizer production, thereby reducing flaring.
Implications for Nigeria’s Energy Sector
Analysts note that successful revitalization of these refineries could:
- Reduce Nigeria’s reliance on imported refined products, which currently account for over 70 % of domestic consumption.
- Conserve foreign exchange by cutting the nation’s annual fuel import bill — estimated at US $10 billion in 2025.
- Create skilled jobs in engineering, operations, and ancillary services, supporting local content development.
- Enhance energy security by providing a stable domestic supply of gasoline, diesel, jet fuel, and liquefied petroleum gas (LPG).
Moreover, the emphasis on gas‑based hubs aligns with Nigeria’s Decade of Gas initiative, which targets a 30 % increase in gas utilization by 2030.
Expert Perspective
According to Dr. Adaeze Nwosu, Senior Fellow at the African Energy Policy Institute and a former senior engineer at NNPC, “The involvement of experienced Chinese EPC contractors brings both technical depth and financing flexibility that have been missing in past refinery rehabilitation attempts. However, the ultimate success will hinge on transparent governance, clear risk‑sharing mechanisms, and sustained political will.”
Dr. Nwosu’s assessment is based on a review of NNPC’s 2023‑2025 refinery performance reports and recent Chinese‑Nigerian infrastructure collaborations, such as the Lekki Deep Sea Port and the Kaduna‑Kano railway upgrade.
References
- NNPC Ltd. Press Release, “NNPC Ltd. Signs MoU with Sanjiang Chemical and Xinganchen (Fuzhou) for Refinery Revitalization,” 30 April 2026. nnpcgroup.com/news/2026/04/30/mou-sanjiang-xinganchen
- Reuters, “Nigeria seeks Chinese help to revive dormant refineries,” 2 May 2026. reuters.com/article/nigeria-refineries-china
- African Energy Policy Institute, “Decade of Gas: Progress and Prospects,” 2025. aepei.org/reports/decade-of-gas-2025
