The Group Managing Director (GMD) of Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari has said that the NNPC’s 445 000 barrels-per-day (bpd) refineries, the 650,000 bpd Dangote Refinery and the 250,000 bpd expected to come from the Condensate Refineries through the private sector partnership respectively would meet Nigeria’s Premium Motor Spirit (PMS) needs.
The GMD spoke at the just concluded 15th Oil Trading and Logistics (OTL) Africa Downstream Week in Lagos.
Kyari’s position was in response to comments by the President of the Dangote Group, Alhaji Aliko Dangote, who expressed dissatisfaction that Nigeria, a leading oil producer, still imports its petroleum needs.
Represented by NNPC’s Group Executive Director, Downstream, Adeyemi Adetunji, Kyari explained that the diversification of NNPC’s portfolio through acquisition of 20 per cent equity, valued at $2.6 billion in Dangote Refinery located in the Lekki Free Trade Zone, would ensure national energy security and guarantee market for Nigeria’s 300,000 bpd.
Kyari said: “NNPC is adding 215,000 bpd of refining capacity through private sector-driven co-location at the existing facilities in Warri Refining and Petrochemical Company (WRPC) and Port Harcourt Refining Company (PHRC) respectively. Modular refineries are also adding capacities, such as the 5,000 bpd Waltersmith Refinery, which will be upgraded to 50,000 bpd.
“Additional 250,000 bpd is expected to come from the condensate refineries through the private sector partnership. The co-location and condensate refineries will close the PMS supply-demand gap and create positive returns to the investors.”
The GMD said the Corporation has made remarkable progress with the refineries rehabilitation programme to boost its participation in the oil & gas value chain by awarding the $1.5 billion Port Harcourt rehabilitation contract with the commitment to deliver on Warri and Kaduna Refineries.
He noted that the demand for natural gas could grow about four 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.
He put the current supply to the domestic market at about 8bcf/d to power, 0.77 bcf/d to industries, and about 54 bcf/d was flared. He 3.2 bcf/d was for export gas through the LNG and the West Africa Gas Pipeline (WAGP).