OPEC Says New Refineries Coming Up in Nigeria to Rival Dangote, Lift Sales, One Produces 20,000bpd
- The Organisation of Petroleum Exporting Countries (OPEC) has projected the establishment of new modular refineries in Nigeria
- The organization revealed this in its report recently, saying the refineries will complement the Dangote refinery to lift crude oil sales in Africa
- The report hyped the Dangote Refinery as one the major contributors to sales in Nigeria when operational
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The Organisation of Petroleum Exporting Countries (OPEC) has revealed that Nigeria is about to witness the establishment of small modular refineries with 20,000 bpd capacity in the medium term.
The group revealed this in its World Oil Outlook, launched in Saudi Arabia.
New modular refineries are springing up to complement the Dangote refinery
The Outlook says Africa will see a medium-term distillation capacity of 1.2 million barrels daily.
Source: Getty Images
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A significant increase is due to the upcoming 650,000-capacity Dangote Refinery, which is projected to boost Nigeria's capacity.
The refinery was officially opened in May 2022 by ex-President Muhammadu Buhari and is slated to begin production in October with the initial plan of refining diesel and aviation fuel and later petrol in November.
The report said:
"Moreover, Nigeria is set to witness several small modular refineries established in the medium term, with capacities of up to 20 thousand barrels per day (tb/d) each."
Nairametrics reports that despite the optimistic projection of the report, Nigeria faces funding setbacks for modular refineries and rising incidents of pipeline vandalism and crude oil theft.
Analysts say the Dangote refinery will cause a significant shift in pricing.
Policy energy analyst and Team Lead, Platforms Africa, Adeola Yusuf, revealed in an interview with Legit.ng that the coming onstream of Dangote Refinery will not make it any better for Nigeria to earn more Forex from crude oil.
"The refinery is privately owned and would seek to maximize profits. Also, it is sited on a Free Trade Zone, meaning Nigerian laws do not bind it and may probably sell refined products to Nigeria in dollars," Yusuf stated.
But in a response to whether the Dangote Refinery will sell products to Nigeria in foreign currency, the company's management said it would sell to Nigeria in the local currency.
NNPC becomes the sole importer of petrol as Port-Harcourt begins production in December
Legit.ng reported that the Group CEO of Nigeria National Petroleum Company Limited (NNPC), Mele Kyari, said the company has returned to being the sole importer of petrol in Nigeria.
Kyari said the current Forex scarcity has impeded marketers' ability to import refined products despite obtaining the requisite licenses.
The Nigerian government has stated that the Port-Harcourt Refinery will commence production in December, but analysts have said more is needed to satiate the consumption needs of Nigerians.
Oil marketers move to end NNPC monopoly, set to resume petrol import as landing cost hits N720/litre
Legit.ng reported that there are indications that the Nigerian National Petroleum Company Limited (NNPC) will soon cease to be Nigeria's sole importer of petroleum products.
The development comes as oil marketers are said to resume importation of petrol as the Nigerian Government moves to end NNPC petrol import dominance.
The move follows a meeting between the Depots and Petroleum Marketers Association of Nigeria (DAPPMAN) and Major Marketers Association of Nigeria (MOMAN) with top officials of the Nigerian Midstream and Downstream Petroleum Products Regulatory Agency (NMDPRA) this week.
Source: Legit.ng
