Page 5 - AfrOil Week 44 2021

AfrOil COMMENTARY AfrOil

The Port Harcourt refining complex has an of products, revamp LPG infrastructure and
installed capacity of 210,000 bpd, while the build [CNG] plants.”
Warri and Kaduna units have capacities of
125,000 bpd and 110,000 bpd respectively. Gas demand
“The NNPC refineries’ 445,000 bpsd and Meanwhile, as Nigeria seeks to increase gas
Dangote refinery’s 650,000 bpsd running at connectivity to the north of the country, Kyari
60% and nameplate capacity respectively would anticipates that demand will grow significantly
supply 76% of that requirement, leaving a short- – from around 4.8bn cubic feet (136mn cubic
fall of about 17mn litres per day (lpd) of PMS,” metres) per day in 2020 to 10-23 bcf (283-
Kyari said. 651 mcm) per day by 2030. Current demand
According to a research note from UK-based includes 8 bcf (227 mcm) per day for power, 0.77
consultancy IGM Energy, overhaul work and bcf (22 mcm) to industry and 3.2 bcf (91 mcm)
projects covered by active permits from the per day exported via the West Africa Gas Pipe-
Department of Petroleum Resources (DPR) line (WAGP), with around 54 bcf (1.5bn cubic
are intended to increase active refining capacity metres) per day flared, he said.
to 1.55mn bpd. However, as the report points Significant gas demand will stem from new
out: “achieving the full 1.5mn bpd of capacity fertiliser projects, including those by Dangote Kyari anticipates
required to cover domestic fuel demand in full at Lekki and NNPC’s Brass facility in Bayelsa
is reliant on the completion of 20 more facilities, – around 5 bcf (142 mcm) per day, increasing that Nigeria’s
which, given the current state of the industry, is power capacity in line with the Presidential
quite a stretch of the imagination”. Power Initiative – up from 1.4 bcf (40 mcm), and domestic natural
NNPC has a dire track record for refinery improving connectivity with industrial facilities
operation, but will take a back seat going for- in the north of the country – 1.2 bcf (34 mcm). gas demand will
ward, though its recent mandate to acquire a On the topic of connectivity, Kyari high- grow significantly
stake in any private refinery constructed with a lighted the Obiafu-Obrikom to Oben (OB3)
capacity of 50,000 bpd or more suggests that the and Ajaokuta-Kaduna-Kano (AKK) pipelines. by 2030
company is keen to make up for past failings to “The OB3 project, which brings gas from East to
direct the growth of the downstream sector. West, is nearing completion. The 614-km AKK
IGM Energy noted that there are also plans project, which was launched by the president in
to co-locate 215,000 bpd worth of capacity at the June 2020, is progressing very well. These could
Port Harcourt Refining Co. (PHRC) and Warri add up to $40bn to annual GDP and create addi-
Refining and Petrochemical Co. (WRPC), while tional 6mn jobs,” he said.
there are plans to upgrade the Waltersmith facil- The Nigerian government has previously
ity to 50,000 bpd. declared 2021-2030 the “Decade of Gas,” and
Kyari also expressed hopes that a further the country certainly has significant scope to
250,000 bpd could be added in the form of con- improve on its poor record for gas utilisation.
densate refineries, with private investors to be However, given the twin push to monetise
attracted by “positive returns.” gas and to overhaul Nigeria’s refining sector, a
He stated: “About $3.097bn investment more accurate representation would have been
opportunities exist in condensate refineries, to declare it the “Decade of Improved Self-Re-
while $1.6bn-$2.7bn is required by NNPC to liance.” Admittedly, though, this is not a very
improve the supply and distribution petroleum catchy name. ™

Dangote refinery construction site (File Photo)

Week 44 03•November•2021 www. NEWSBASE .com P5