Page 18 - DMEA Week 31

DMEA NEWS IN BRIEF DMEA

Iran says petchem output Umuseti, Delta State and Ogbele, Rivers per litre for 95 octane unleaded petrol, and
In January, pump prices were at N$13,05
States, would come on stream.
will rise by 4mn tonnes N$13,63 per litre for diesel 50 ppm.
It then dipped following a crash in oil
thanks to three projects Nigerian fuel marketeers prices when the world went into Covid-19-
imposed lockdowns.
The CEO of National Petrochemical hike prices
Company (NPC), Behzad Mohammadi
has said that 27 projects are going to be Nigerians across the country on August 5 Dangote refinery 71%
inaugurated in the second phase of the reacted angrily as oil marketers’ commenced
country’s petrochemical industry. sale of fuel at between N148 and N 150 in complete: DPR
Referring to the inauguration of three some cities.
major petrochemical projects on Thursday, The increase from N141 per litre band to Construction of the $12 billion Dangote
Mohammadi said: “These projects include N150 was as a result of increase in ex-depot Refinery, which has the capacity to refine
Kaveh Methanol Petrochemical complex, price to N138.6, Daily Trust reports 650,000 barrels per day, has reached 71%
Middle East Kimia Pars Petrochemical Though the Federal Government had yet to completion stage.
Company, and Lorestan Catalyst projects officially announce the new pump price as at The Department of Petroleum Resources,
with a total investment of $ 1.57bn which the time of filing this report Wednesday night, DPR, stated this in its latest report-- List
will increase the production capacity more some marketers in Kano, Abuja and Lagos had of Valid Refinery Licences-- obtained by
than 4mn tonnes.” gone ahead to sell between N148 and N150, Vanguard.
He added: “27 projects are to be our correspondent observed. The report also noted that the refining
inaugurated in the second phase of the The government on Augut 5 fixed ex-depot capacity of Nigeria has increased from
country’s petrochemical industry, which price of petroleum at N138.62, an increase of 445,000 bpd to 462,000 bpd, as private
will be put into operation at the end of N6 from its previous N132 - N133. investors complete the construction of three
2021.” This means N6 may be added to a litre of new refineries, indicating an increase of 3.8%.
“Of this number, 17 projects will be put petrol by retailers at fuel stations across the It listed the refineries to include
into operation by the end of this year and country. Waltersmith Refining and Petrochemical
will increase the capacity from 66mn tonnes The new ex-depot price was contained Company Limited, OPAC Refineries Limited
to 90mn tonnes. At the end of 2021, we in an internal memo by the Petroleum and and Niger Delta Petroleum Resources
will reach a capacity of 100mn tonnes and Products Marketing Company (PPMC) (Train2), which have 5,000 bpd, 7,000 bpd and
revenue of $25bn,” he concluded released on August 4. 5,000 bpd capacities, respectively.
Though the Petroleum Products Pricing The refining capacity of the nation’s four
Regulatory Agency (PPPRA), met with oil refineries, located in Port Harcourt, Rivers
Nigeria’s domestic refining marketers Tuesday afternoon, it neither State; Warri, Delta State, and Kaduna, Kaduna
announced new pump price of petrol nor
State, had for several years been stagnated at
capacity to rise by 3.8% the ex-depot price of Premium Motor Spirit 445,000 bpd, which was inadequate to meet
domestic demand.
(PMS).
The refining capacity of Nigeria will rise from The Independent Petroleum Marketers Recall that President of Dangote Group,
445,000 barrels per day to 462,000 bpd, as Association of Nigeria (IPMAN) directed its Mr. Aliko Dangote, had stated that “one of the
private investors complete the construction of members to sell fuel at N150 per litre. reasons the Central Bank of Nigeria, CBN, is
three new refineries, indicating an increase of The directive was contained in a statement supporting us is that by the time we become
3.8%. issued and signed by the IPMAN chairman operational, we will not only be creating
The refining capacity of the nation’s four Kano chapter, Bashir Danmalam. jobs, but will reduce the outflow of foreign
refineries, located in Port Harcourt, Rivers According to the statement the directive is exchange.”
State, Warri, Delta State and Kaduna, Kaduna in compliance with the new price modulation Still, on Dangote Refinery, he noted that
State, had for several years been stagnated at announced by the PPMC, which announced stemming the outflow of foreign exchange
445,000 bpd, which was inadequate to meet the new pump price. is “not only in petroleum products, but in
domestic demand. petrochemicals and fertilisers.”
But in its latest report -List of Valid Meanwhile, reacting to the increase in
Refinery Licences – obtained by Vanguard Namibia to see first fuel refining capacity in an email to Vanguard,
yesterday, the Department of Petroleum Executive Secretary, Nigeria Content
Resources, DPR, stated that the completion price increase of year Development Monitoring Board, NCDMB,
of work by Waltersmith Refining and Engr. Simbi Wabote, said: “The Waltersmith
Petrochemical Company Limited, OPAC The Ministry of Mines and Energy of Namibia Modular Refinery is a 5,000 bpd facility with
Refineries Limited and Niger Delta increased gasoline and diesel prices on August total annual product volume of 271mn litres
Petroleum Resources (Train2), which 4, marking the first rise of the year. and daily output of about 300,000 litres of
have 5,000 bpd, 7,000 bpd and 5,000 bpd The increase of N$1 for petrol and 70 diesel (AGO), over 50,000 litres of kerosene
respectively, would increase the nation’s cents for diesel will bring fuel pump prices at (DPK) and 400,000 litres of heavy fuel oil
capacity by 17,000 bpd, bringing the total to the coast to N$11,35 for a litre of petrol and (HFO).
462,000 bpd. N$11,38 per litre of diesel.
However, the report did not disclose when This month’s increase will be the first this
the new plants, located in Ibegwe, Imo State; year.

P18 www. NEWSBASE .com Week 31 06•August•2020