Nigeria\u2019s modular refining sector is expected to expand next year, with seven new refineries projected to commence operations with a combined capacity of 83,000 barrels per day, according to Argus Media\u2019s George Maher-Bonnett.\n<\/p>\n
Maher-Bonnett disclosed this in Lagos on Wednesday during a presentation at the OTL Africa Downstream conference, where he highlighted the changing dynamics of Nigeria\u2019s petroleum products market amid rising local refining capacity and declining fuel demand.\n<\/p>\n
In his presentation, titled \u2018African Energy Outlook\u2019, Maher-Bonnett said four modular refineries operated in Nigeria in September, with a combined capacity of 32,000 barrels per day.\n<\/p>\n
\u201cFour modular refineries operating in September, total 32,000 b\/d capacity,\u201d he said.<\/p>\n
He added, \u201cSeven new modular refineries to start next year\u201c with a total of 83,000 barrels per capacity.<\/p>\n
The projected additions would represent more than two and a half times the combined capacity of the four modular refineries operating in September, potentially increasing the contribution of smaller refining facilities to Nigeria\u2019s domestic petroleum products supply.\n<\/p>\n
However, the presentation did not identify the seven proposed refineries, their owners or locations, or provide individual capacity figures and commissioning schedules.<\/p>\n
Maher-Bonnett also highlighted the growing role of the Dangote Petroleum Refinery in improving Nigeria\u2019s self-sufficiency in petroleum products, despite a decline in fuel demand during the year.\n<\/p>\n
\u201cNigerian fuels demand is down this year,\u201d the presentation stated, attributing the development to \u201chigher flat prices.\u201d <\/p>\n
He added self-sufficiency is improving with Dangote ramp-up, projecting that modular refineries would play a growing role.\n<\/p>\n
The presentation linked the decline in demand to higher prices and noted that the only government intervention during the period covered was an NNPC price reduction.\n<\/p>\n
\u201cNo government interventions, besides NNPC price cut this month,\u201d it stated.\n<\/p>\n
The expected expansion of modular refining capacity comes as Nigeria\u2019s petroleum products market adjusts to increased domestic production and changing international trade flows.\n<\/p>\n
Maher-Bonnett said the Dangote refinery is operating at a high rate, with steady petrol output, reducing the attractiveness of importing some petroleum products from Europe into West Africa.<\/p>\n
\u201cDangote\u2019s 700,000 bpd Lekki refinery is running hard, gasoline output is steady,\u201d the presentation stated.\n<\/p>\n
It also highlighted Ghana\u2019s growing refining capacity, noting that the 45,000-barrel-per-day Tema refinery is ramping up production and improving the country\u2019s self-sufficiency.\n<\/p>\n
According to the presentation, the economics of shipping petroleum products from Europe to West Africa and from Europe to the United States has weakened, with freight costs further affecting the competitiveness of the routes.\n <\/p>\n
Source: <\/p>\n
Nigeria\u2019s modular refining sector is expected to expand next year, with seven new refineries projected to commence operations with a combined capacity of 83,000 barrels per day, according to Argus… <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-3892","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/3892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/comments?post=3892"}],"version-history":[{"count":0,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/3892\/revisions"}],"wp:attachment":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media?parent=3892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/categories?post=3892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/tags?post=3892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}