Page 4 - AfrOil Week 22 2022

AfrOil COMMENTARY AfrOil

Port Harcourt refinery (Photo: NNPC)
Despite recent issues, Nigeria

talks up refining ambitions

Nigeria has unveiled an optimistic new refining roadmap. The projects are not new, but the timeline is

NIGERIAN officials spoke optimistically last to 1.4mn bpd by 2027 from the current level of
week about their ambitious plans for refining just 16,000 bpd.
WHAT: expansion amid calls for the build-out of the While almost 80% of the increase is seen
With a current capacity of country’s midstream. coming from the rehabilitation of the four state-
just 16,000 bpd, Nigeria While refinery capacity is limited to several owned refineries and the launch of the giant
is planning to reach small modular units that have in recent months Dangote unit, a hike of nearly 300,000 bpd is
1.4mn bpd by 2027. complained about a lack of feedstock, Abuja is envisaged from smaller private plants.
adamant that it can rapidly turn around its poor Outlining the repair of state-run refineries
WHY: performance in the downstream sector. and the provision of “strategic support” for the
The country has long Multi-billion-dollar repairs are being carried development of privately owned greenfield and
suffered from a lack of out on the full 445,000 barrel per day (bpd) slate modular units, Simbi Wabote, executive secre-
opportunities to integrate owned by Nigerian National Petroleum Co. tary of the Nigerian Content Development and
its world-class upstream
sector with facilities that Ltd (NNPC Ltd), which is currently sitting idle. Monitoring Board (NCDMB), said: “Combined
can produce fuel for However, the majority of the increase is seen refining capacity of more than 1.4mn bpd is
domestic consumption. coming from the private sector, which also has a expected from these focus areas within the next
patchy track record. five years.”
WHAT NEXT: He continued: “About 400,000 bpd is
The success of the Target setting expected from the rehabilitation of NNPC
programme will largely Looking to support local communities, cre- refineries in Port Harcourt, Warri and Kaduna
be determined by the ate jobs, shelter the country from fuel market using target performance of not less than 90%
completion and start- volatility and also wean Nigeria off costly fuel of nameplate capacity. The greenfield element
up of the long-awaited subsidies and imports, the Ministry of Petro- of the roadmap covers the 650,000 bpd Dangote
Dangote Refinery. leum Resources (MPR) has unveiled a Refining Refinery in Lagos and the 200,000 bpd BUA
Roadmap that envisions an increase in capacity Refinery in Akwa Ibom.”

P4 www. NEWSBASE .com Week 22 01•June•2022