Aradel Holdings, a key player in Nigeria’s energy sector, has announced plans to establish a modular refinery that will rival the Dangote refinery within the next 12 months. The revelation came during the company’s 30th-anniversary celebration and rebranding event held in Lagos.
Adegbite Falade, the Managing Director and Chief Executive Officer of Aradel Holdings, unveiled the ambitious timeline for the company’s modular refinery to begin operating, specifically to refine premium motor spirit (PMS), commonly known as gasoline. Falade emphasized the company’s commitment to local content development and the diversification of Nigeria’s economy.
Energy Afrique had early this month reported that Aradel Holdings planned to unveil a new brand identity in a grand launch event scheduled for Friday, last week.
The announcement came after Aliko Dangote opened Africa’s largest refinery, which is expected to refine 650,000 barrels of crude oil daily.
Aradel Holdings’ strategic move aims to bolster domestic hydrocarbon processing while reducing the nation’s dependence on fuel imports, thereby mitigating financial pressures stemming from substantial importation costs.
Falade confidently stated, “In less than 12 months, our privately-owned modular refinery for PMS will commence operations. This marks a significant milestone for domestic energy production, with the added promise of expanded capacity.”
Highlighting the broader impact of the initiative, Falade also noted that the company possesses the capability to generate 4.6 megawatts (MW) of power. Further ambitions include scaling up this initial capacity to around 50 MW within the next five years.
Speaking at the occasion, Simbi Wabote, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), underscored Aradel Holdings’ success as rooted in its unwavering commitment to corporate governance principles.
Wabote emphasized the pivotal role that adherence to such principles plays in a company’s success, while urging other entities in Nigeria’s oil and gas sector to emulate Aradel Holdings’ model to foster growth and development.
Aradel Holdings’ entry into the competitive landscape signals a potential shift in Nigeria’s energy dynamics, promising increased domestic refining capacity and reduced reliance on fuel imports. As the countdown begins for the operational launch of its modular refinery, industry observers eagerly await the unfolding impact on the nation’s energy sector.