The Nigerian National Petroleum Corporation, NNPC,says the country needs 1.52 million barrels per refining capacity to meet current demand.
The Group Executive Director, Downstream, NNPC, Engr. Yemi Adetunji, who disclosed this at the OTL Africa Downstream Week 2021, in Lagos,said demand for petroleum products is expected to grow from 15.1 million MT in 2020 to 17.3 million MT by 2025.
He added that demand will stimulate investments in refineries particularly condensate and modular plants.
According to him,NNPC and its partners are adding 215,000 barrels per day, BPSD & 250,000 BSPD capacity via co-location and condensate refineries, respectively.”
He added:“Modular refineries like the Waltersmith refinery located in Imo state will play a key role in meeting demand.Additional refining capacity is required to meet current demand.Product importation due to inadequate in-country refining.
“An increase in crude price and Forex rates continue to push landing costs higher. PIA provides for unrestricted free market-determined pricing for petroleum products.Need for alternatives will create new market opportunities like Autogas and Electric Vehicles (EVs).
“Global decarbonization efforts to switch to renewables in response to environmental concerns. PIA supports a shift to gas creating new opportunities in the fuels market.”
Similarly, the Executive Secretary, Major Oil Marketers Association of Nigeria, MOMAN, Mr. Clement Isong, said the implementation of the Petroleum Industry Act, PIA, would go a long way in stimulating the sustainable development of the downstream sector in particular and the oil and gas industry in general.
He said: “Removal of price controls thereby eliminating subsidy/under-recovery and providing for cost recovery for market players to provide for the funding of necessary maintenance and renewal of assets, such as depots, refineries, pipelines, trucks and filling stations – resulting in the sustainability of downstream operations”.
