Page 4 - AfrOil Week 44 2021

AfrOil COMMENTARY AfrOil

(Photo: Oil Trading and Logistics Downstream Expo)
NNPC reiterates

downstream ambitions

Nigeria is taking an expansive view of its ability to become self-reliant in petroleum

products and has also made the expansion of gas utilisation a major strategic aim

NIGERIAN National Petroleum Corp. tonnes in 2020 to 17.3mn tonnes [per year] by
(NNPC) said last week that the country’s grow- 2025, the country needs a refining capacity of
WHAT: ing demand for petroleum products gives rise about 1.52mn barrels per stream day (bpsd), to
Abuja may require 1.5mn to significant investment opportunities in the meet its [gasoline] requirement in the next four
bpd of refining capacity downstream. While state and private refining years.”
to meet local fuel demand projects will significantly alter the downstream Given that current active throughput capac-
in 2025. landscape, there are hopes private-backed con- ity is limited to the 5,000 bpd modular Walter-
densate refineries can be added to cater to fuel smith Petroman facility at Ibigwe, this sounds
WHY: demand in full. like a long shot. However, with NNPC spending
Multiple projects are Investment is also ongoing in the midstream several billion dollars to overhaul its full 445,000
either in the planning as Nigeria seeks to improve self-sufficiency and bpd slate across three facilities and the Dangote
stage or already under make progress on the energy transition. Group nearing completion on its 650,000 bpd
development, but it is
unlikely that all of them greenfield facility within the Lekki Free Trade
will come to fruition. Refining slate Zone (Lekki FTZ), work is ongoing already for a
Speaking at the 15th Oil Trading and Logistics significant portion of this.
WHAT NEXT: Africa Downstream Week in Lagos, NNPC’s According to Kyari, the overhaul is moving
Nigeria’s transition Group Managing Director Mele Kyari said forward. NNPC “has progressed with the refin-
will involve improved that Nigeria would need a refining capacity of eries rehabilitation programme to further boost
self-reliance and better around 1.52mn barrels per day (bpd) to meet its its participation in the oil and gas value chain by
connectivity between gasoline demand in the next four years. awarding the $1.5bn Port Harcourt rehabilita-
producing and consum- He said: “As Nigeria’s demand for petroleum tion contract with the commitment to deliver on
ing areas. products is expected to grow from 15.1mn Warri and Kaduna Refineries,” he said.

P4 www. NEWSBASE .com Week 44 03•November•2021