Page 5 - DMEA Week 09 2022.indd

DMEA COMMENTARY DMEA

facilitate the development of the operational He added: “A barrel of oil utilised as a resource
Waltersmith Modular Refinery in Imo State, generates multiple products that are utilised in
which has a capacity of 5,000 bpd with plans to transportation, construction, aviation, agricul-
gradually increase this to 45,000 bpd. ture and others.”
“Next in view is the 2,500 bpd Duport Mod-
ular Refinery located in Edo State due for com- Regulatory issues
missioning by the second quarter of this year,” Meanwhile, speaking at the same event, the
Wabote added. This suggests that the facility’s NNPC’s executive director of refining Mustapha
timeline has shifted, with developer Duport Yakubu said that in order to reap the benefits
Midstream Co. saying in mid-February that the of the expansion of modular refining, Nigeria
plant would be launched during March. needs to fully deregulate the downstream sector.
At launch, the project at Egbokor Energy He told delegates that liberalising the sale
Park will comprise 2,500 bpd of refining capac- of gasoline (known locally as premium motor
ity, a 5-MW power plant, a 40mmcf (1.13 mcm) spirit) would encourage the establishment of
per day gas processing facility, 20,000 tonnes more modular and condensate refineries.
(1.5mn barrels) of crude storage., which are “We believe that there is need to improve
seen increasing to 10,000 bpd, 60 mmcf (1.7 our domestic refining capacity. That is why the
mcm) per day and 50 MW respectively, with a 10 NNPC is embarking on total rehabilitation of
mmcf (0.28 mcm) per day compressed natural our four refineries and not just the usual turn-
gas (CNG) facility to be added later. around maintenance. We are going to have
Wabote noted that other modular facilities locally refined products after the completion of
under construction include the 12,000 bpd the rehabilitation,” he said in a nod to the ongo-
Azikel Hydroskimming refinery in Bayelsa and ing work at the state-owned refineries.
the 2,000 bpd Atlantic International Refineries Yakubu added that “NNPC is supporting pri-
and Petrochemical Ltd unit at Okpoama. vate investors in establishing” planned refineries,
Speaking Downstream MEA (DMEA), IGM though did not explain in what way it is helping.
Energy owner and principal advisor Ian Simm Presumably he was not referring to the case of
said: “Nigeria’s current active refining capac- Dangote in which the NNPC has assumed a 20%
ity is limited to Waltersmith (5,000 bpd), the share for a knock-down price, much of which it
OPAC Refineries facility in Delta (10,000 bpd), will pay for in crude feedstock supplies.
the Niger Delta Petroleum Resources (Train 3) Meanwhile, Tunji Oyebanji, managing direc-
plant in Rivers (1,000 bpd) and the Edo Refinery tor of 11 Plc said the postponement of the full
and Petrochemical Company Ltd in Edo (6,000 deregulation of the downstream sector was a
bpd).” major setback to the industry.
He added the “new modular launches are He added that the liberalisation of the sector
seen adding another 16,500 bpd this year, and would enable investors across the value chain
including start-up at Dangote, the country’s to have ‘adequate returns on their investments’,
refining slate could grow to 579,000 bpd by which was the goal of the Petroleum Industry
year-end”. Act (PIA).
Wabote said: “As we get closer to the realisa- Meanwhile, Emmanuel Omuojine, executive
tion of this scenario, it enables us to see oil as a director at Rainoil Ltd, said that the removal of
resource rather than a commodity for trading. subsidies would add significant value to Nigeria’s
It means value addition to this resource for the foreign exchange reserves, increase competition
production of other items and consumables.” and incentivise investment.™

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