Page 4 - DMEA Week 09 2022.indd

DMEA COMMENTARY DMEA

Price deregulation

needed as Nigeria

eyes refining progress

Nigerian officials call for fuel market liberalisation as refining progress continues

AFRICA NIGERIA is anticipating significant progress Alluding to ongoing work by the Nigerian
on its refining renaissance this year with several National Petroleum Corp. (NNPC) across its
facilities seen coming into operation. However, chronically under-utilised refining slate, he said:
WHAT: concerns have been raised that smaller facili- “About 400,000 bpd is expected from the reha-
New modular and ties are being hamstrung in providing gasoline bilitation of NNPC refineries in Port Harcourt,
conventional refineries supplies to remote areas because of state pricing Warri and Kaduna using target performance
are seen changing regulations. of not less than 90% of nameplate capacity [of
Nigeria’s economic The country’s current refining slate is limited 445,000 bpd].”
landscape over the next to 22,000 barrels per day across four modular Meanwhile, he added that the “mechani-
year. refineries across the states of Delta, Edo, Imo and cally complete Dangote Refinery in Lagos and
Rivers, but could surpass 550,000 bpd by the end the BUA Refinery in Akwa Ibom are expected
WHY: of the year and rising yet further in 2023. to deliver refining capacity of 650,000 bpd and
Delegates at a recent 200,000 bpd respectively,” though did not give a
conference argued that Progress report date for the launch of the latter.
the fuel market needs Speaking at this week’s Nigeria International In January, Aliko Dangote, the president of
major change to ensure Energy Summit in Abuja, Simbi Wabote, exec- Dangote Industries, said he anticipated his hold-
continued investment. utive secretary of the Nigerian Content Devel- ing’s new refinery to begin operating before the
opment and Monitoring Board (NCDMB), end of September 2022 at an initial capacity of
WHAT NEXT: reiterated the country’s plans to achieve a domes- 540,000 bpd, with full capacity to be reached in
With ambitious plans in tic refining capacity of more than 1.4mn bpd by early 2023.
place to ramp up refining the end of 2027.
capacity, incentivising Wabote noted that President Muhammadu Modular momentum
these new facilities to Buhari’s Refining Roadmap would seek to reach Wabote said that NCDMB, which has invested in
operate at capacity is this level through the “rehabilitation of existing several modular refining projects for a minority
next on Abuja’s agenda. four national refineries, co-location of new refin- equity stake, is acting as a catalyst to enhance the
eries, construction of greenfield refineries and realisation of the refining roadmap.
construction of modular refineries.” He said that this approach had helped to

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