Page 13 - DMEA Week 24 2021

DMEA SUPPLY DMEA

Nigeria anticipates import reprieve

AFRICA THE Governor of the Central Bank of Nigeria in the world.”
(CBN), Godwin Emefiele, this week said that The facility will have a capacity of 3mn tpy
increased refining activity and urea output would in its first phase, and is the largest project in the
reduce the country’s refined product import bill global fertiliser sector. Phase 1 came in at a total
by up to 35% per year. cost of $2.5bn and is located near the 650,000
Speaking to the press gathered in Abuja, he barrel per day (bpd) oil refinery Dangote is
said that the country’s production capabilities building at a cost of nearly $20bn.
in both areas would ramp up significantly by Q1 The Dangote Fertiliser complex consists of
2022, more than catering to domestic demand two 2,200 tonne per day (tpd) ammonia plants
and offering opportunity for export. using Halder Topsoe technology, two 4,000 tpd
Emefiele noted that the Dangote Refinery melt urea plants using Snamprogetti technology
and Petrochemical complex at the Lekki Free and two 4,000 tpd urea granulation plants using
Trade Zone outside Lagos and two other facilities Uhde Technology.
would have a joint capacity of 6.5mn tonnes per Meanwhile, Emefiele said that when the Dan-
year (tpy) of urea. gote refinery comes into operation early next
He added that Nigeria needs “about 1.5mn to year, Nigeria will have “reduced our importation
2mn tonnes to satisfy our own domestic needs. by about at least close to 35%”.
That means we have the potential to export the “Luckily Nigeria is endowed. Nigeria has
excess and earn foreign currency from these crude oil. Nigeria has gas and that is why, leaning
items”. However, the governor quoted the urea on the words of our president, we have chosen to
demand figure at “1-1.5mn tpy”. Speaking at a encourage companies to look inwards by helping
ceremony to launch production at the Dangote to provide funds for them to bring in equipment
urea unit, he said “we have potential to export that they need,” he said. Emefiele added: “They
at least 3-4mn [tpy] of urea to different parts of will source their raw materials almost 100%
the world. With this latest development, Nigeria locally. That is one of the things we are doing to
has become one of the major producers of urea strengthen our economy.”™

Local firms agree supply deals with NNPC

AFRICA THE Nigeria LNG (NLNG) consortium home heating, he asserted.
revealed last week that it had signed supply deals The NLNG managing director also urged
with three local companies. Nigeria to make more use of its natural and asso-
Speaking at the CEO Roundtable session of ciated gas reserves, saying that the country did
the Nigeria International Petroleum Summit not need to use crude oil or petroleum products
(NIPS), NLNG’s managing director Tony Attah to power its economy. Nigeria has 203 trillion
said the group had recently signed deals with feet (5.75 trillion cubic metres) of gas in proven
Asiko Power, Bridport Energy and Gas-Plus reserves, as well as 600 trillion cubic feet (16.99
Energy. These supply and purchase agreements trillion cubic metres) in potential reserves, he
(SPAs) provide for the delivery of 1.1mn tonnes noted. This is enough to support a wide range of
per year (tpy) of LNG, he said, without revealing gas-to-power and industrialisation programmes
how much each company would receive. that have the potential to transform the econ-
He further indicated that NLNG had negoti- omy, while also reining in carbon emissions, he
ated the deals within the framework of efforts to said.
promote domestic consumption of LNG, either NLNG is the operator of a gas liquefaction
as a fuel for manufacturing facilities and power plant on Bonny Island. The facility has six pro-
plants or as feedstock for LPG. The signing of the duction trains capable of turning out a total of
SPAs will facilitate efforts to establish local deliv- 22.5 mn tpy, and its capacity is set to rise to 30mn
ery infrastructure, he said. tpy as a result of the Train 7 project. This scheme
In the meantime, Attah said, NLNG is also envisions the construction of a seventh produc-
expanding its own production of LPG for sale tion train that can turn out 4.2mn tpy, as well as
on the Nigerian market. The consortium turned the debottlenecking of existing trains, which will
out 370,000 tonnes of LPG last year and hopes add another 3.4mn tpy of capacity.
to raise the figure to 450,000 tonnes in 2022, he Equity in the consortium is divided between
stated. state-owned Nigerian National Petroleum
He also praised the Nigerian government’s Corp. (NNPC), with 49%; Royal Dutch Shell
policy of promoting LPG as an alternative to (UK/Netherlands), with 25.6%; TotalEnergies
solid fuels such as wood, charcoal or dung. LPG (France), with 15%, and Eni (Italy), with 10.4%.
is a clean and affordable fuel for cooking and The partners began production in 1999.™

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