Page 4 - DMEA Week 43 2021

DMEA COMMENTARY DMEA

NNPC reiterates

downstream ambitions

Nigeria is ambitious about its ability to become self-reliant in fuel while
building out gas utilisation in the country is a major strategic aim.

AFRICA THE Nigerian National Petroleum Corp. is limited to the 5,000 bpd modular Waltersmith
(NNPC) this week said that the country’s grow- Petroman facility at Ibigwe, this sounds like a
ing demand for petroleum products give rise longshot.
WHAT: to significant investment opportunities in the However, with NNPC spending several bil-
Abuja anticipates that it downstream. lion dollars to overhaul its full 445,000 bpd slate
will require 1.5mn bpd of While state and private refining projects will across three facilities and the Dangote Group
refining capacity to cater significantly alter the downstream landscape, nearing completion on its 650,000 bpd green-
to local fuel demand in there are hopes private-backed condensate refin- field facility at Lekki, work is ongoing already for
2025. eries can be added to cater to fuel demand in full. a significant portion of this.
Investment is also ongoing in the midstream The NNPC “has progressed with the Refiner-
WHY: as Nigeria seeks to improve self-sufficiency and ies Rehabilitation Programme to further boost
While projects are either make progress on the energy transition. its participation in the Oil and Gas value chain
in planning or already by awarding the $1.5bn Port Harcourt rehabilita-
under development Refining slate tion contract with the commitment to deliver on
that could achieve this Speaking at the 15th Oil Trading and Logistics Warri and Kaduna Refineries”, he said.
figure, it is unlikely that Africa Downstream Week in Lagos, NNPC The Port Harcourt refining complex has an
all of them will come to managing director Mele Kyari said that Nige- installed throughput capacity of 210,000 bpd
fruition. ria would need a refining capacity of around while the Warri and Kaduna units have capaci-
1.52mn barrels per day (bpd) to meet its gasoline ties of 125,000 bpd and 110,000 bpd, respectively.
WHAT NEXT: demand in the next four years. “The NNPC refineries’ 445,000 BPSD and
Nigeria’s transition is to He said: “As Nigeria’s demand for petroleum Dangote Refinery’s 650,000 BPSD running at
move to improved self- products is expected to grow from 15.1mn 60% and nameplate capacity, respectively, would
reliance and improved tonnes in 2020 to 17.3mn tonnes by 2025, the supply 76% of that requirement, leaving a short-
connectivity between country needs a refining capacity of about fall of about 17mn litres per day of PMS,” Kyari
producing and consuming 1.52mn barrels per stream day (bpsd), to meet its said.
areas. [premium motor spirit (gasoline)] requirement According to a research note issued this
in the next four years.” week by UK-based consultancy IGM Energy,
Given that current active throughput capacity overhaul work and projects covered by active

P4 www. NEWSBASE .com Week 43 28•October•2021