Integrated indigenous energy company, Aradel Holdings Plc, has announced plans to begin refining petrol at its modular refinery in 2027.

The company attributed the decision to the removal of fuel subsidies and the deregulation of Nigeria’s downstream oil sector, which have improved the commercial viability of domestic petrol refining.

Temitayo Ogunbanjo, who oversees Aradel’s refining business, disclosed the plans on the sidelines of a conference in Abuja, according to Bloomberg.

Ogunbanjo said the company’s modular refinery currently produces kerosene, diesel, gas oil and naphtha.

He added that Aradel is evaluating an expansion of the facility, as well as crude supply arrangements and export logistics. The company is also considering investing in aviation fuel production for potential exports to Europe.

He said, ‘’The company is also considering expanding the 11,000-barrel-a-day plant, examining potential crude supply and export logistics.’’

Aradel has not disclosed the investment required for the petrol production unit or the proposed expansion. Ogunbanjo said details are expected to be developed during engineering studies over the next year.

The company said higher crude oil prices have boosted earnings from its upstream operations.