NNPC says Nigeria needs $3bn investment in refinery projects

NNPC says Nigeria needs $3bn investment in refinery projects

Leshi Adebayo

The Group Managing Director of Nigeria National Petroleum Corporation (NNPC), Mele Kyari has said that Nigeria would need to invest $3.09bn in refinery projects.

He stated that the investment is needed in order to meet up with the growing demand of 17.3 million metric tonnes of petroleum products.

Kyari, who was represented by the Group Executive Director, Downstream (NNPC) Mr. Adetunji Adeyemi, made this known at the 15th Oil Trading and Logistics (OTL) Africa Downstream Week.

The NNPC boss projected that by 2025, Nigeria’s petroleum product demand would increase to 17.3 million metric tons(MT), up from the 15.1 million MT in 2020.

He noted that investment opportunities estimated around $3.097b currently exists in Nigeria’s condensate refineries’ space.

“As Nigeria’s demand for petroleum products is expected to grow from 15.1 million MT in 2020 to 17.3 million MT by 2025, the country needs a refining capacity of about 1.52 million barrels per stream day (MBPSD), to meet its PMS requirement in the next four years.

“The NNPC refineries’ 445,000 BPSD and Dangote Refinery’s 650,000 BPSD running at 60 per cent and nameplate capacity, respectively, would supply 76 per cent of that requirement, leaving a shortfall of about 17 million litres of PMS daily,” he said.

Kyari continued, “NNPC is adding 215,000 BPSD of refining capacity through private sector-driven co-location at the existing facilities in PHRC and WRPC, respectively. Modular refineries are also adding capacities, such as the 5,000 BPSD Waltersmith refinery, which will be upgraded to 50,000 BPSD.

“Additional 250,000 BSPD is expected to come from the condensate refineries through the private sector partnership. The co-location and condensate refineries will close the petrol supply-demand gap and create positive returns to the investors.

“About $3.097 billion investment opportunities exist in condensate refineries while $1.6 – $2.7 billion is required by NNPC to improve the supply and distribution petroleum of products, revamp LPG infrastructure and build CNG plants.”

He projected, again, that the demand for natural gas could grow about 4 times, over the next decade, increasing from 4.8 billion cubic feet per day (bcf/d) in 2020 to between 10 – 23 bcf/d in 2030.

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