Nigeria to Get 4 New Refineries as South Korean Investors Move to Rival Dangote
- South Korean investors have indicated interest to build four new refineries at various locations in Nigeria
- The Nigerian government confirmed that the consortium will build 100,000 barrels model refineries in the country
- The minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said approval has been given to invite the investors
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
A consortium of South Korean investors has concluded plans to build four 100,000bpd-capacity refineries in various places in Nigeria.
The Nigerian government disclosed this on Tuesday, October 8, 2024.
Source: Getty Images
Investors cleared to build four new oil plants
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this at the first edition of a summit by the Crude Oil Refineries Owners Association of Nigeria (CORAN) in Lagos.
The minister said the Nigerian government encourages investors to build refineries by providing a fair environment.
He noted that the approval was recently given to invite the consortium.
Punch reports that the minister disclosed that Nigeria recently approved a consortium of investors from South Korea, which plans to establish four refineries of the 100,000 barrels model in four locations in Nigeria.
Lokpobiri disclosed that the government adopted a public-private partnership model to encourage investment in the oil and gas sector's midstream and downstream segments.
FG wants value chain in oil sector
The minister said the move will yield results because the Nigerian government is open to equity investments in four modular refineries and other upcoming ones to ensure energy security.
Per the Oil minister, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has developed and published the domestic crude supply obligation guidelines to ensure oil sector transparency and grant feedstock access to local refineries.
Lokpobiri said that the Ministry of Petroleum Resources (Oil) wanted a portion of the National Gas Infrastructure Fund to support infrastructural development for refineries akin to the gas value chain.
NNPC increases petrol prices
The development comes as the Nigerian National National Petroleum Company Limited (NNPC) quit its role as the sole off-taker of the Dangote petrol, paving the way for total deregulation of the downstream petroleum sector.
The move has also led to increased petrol prices by the state oil company.
In a recent document, the NNPC reportedly increased petrol prices from N897 to N989 per litre in Lagos.
The price list also shows that the NNPC has stopped paying subsidies on Dangote petrol.
3 refineries set to begin PMS production, NNPC revises fuel price
Legit.ng earlier reported that the NNPC may commence supplying crude oil in naira to the Dangote Petroleum Refinery this week following the Nigerian government's announcement that the naira-for-crude deal has begun.
The development comes as three more refineries are ready to begin petrol production.
The three refineries include the Aradel refinery in Rivers State, the Clairgold refinery and the Azikel refinery in Bayelsa state.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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