Nigeria Expands Local Refining With Four Modular Refineries, New Licenses
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday gave an update on Nigeria’s local refining capacity, saying there is an expansion with the issuance of nine Licenses to Establish (LTEs), seven Licenses to Construct (LTCS), and four Licenses to Operate (LTOs) for modular refineries.
Authority Chief Executive, Engr. Farouk Ahmed, stated this on Monday in his keynote address at the 18th OTL Africa Downstream Energy Week summit held in Lagos even as he restated the FG’s commitment to achieve 3m barrels per day crude oil production and 10bn standard cubic feet per day domestic gas utilization.
The conference had as its theme, “Alliances for Growth,” attracting stakeholders in the industry.
Ahmed said, “Our refining sector has been expanding rapidly with the issuance of Nine (9) valid License to Establish (LTEs), Seven (7) License to Construct (LTCs) and Four (4) LTOs for modular refineries.
“Dangote Petroleum Refinery and Petrochemical (DPRP) came on stream in February 2024, with production of some petroleum products including AGO, ATK etc. The Refinery commenced production and supply of PMS in September 2024. It is expected that supply from the Refinery will improve significantly when it is fully completed and licensed.”
He stated that Nigeria “is poised to achieve targets of 3 million barrels per day in crude oil production, a projected 10 billion standard cubic feet per day in domestic gas utilization and enhanced domestic refining capacity that positions Nigeria as a net exporter of petroleum products.”
According to him, the gas sector holds a 16 BSCF/D Licensed processing capacity, 5 BSCF/D licensed transportation capacity and 1.5 BSCFD licensed distribution capacity.
“Each of the sub-sector is expanding rapidly alongside the general transformation in the natural gas sector.
“The NMDPRA continues to emplace all necessary measures to actualize the full aspirations of the PIA. These include the assurance of quality and safety in the industry, strategic stakeholder engagements, and provision of regulatory support to key government initiatives such as the Decade of Gas and Pi-CNG programs.”
He noted that within the Midstream and Downstream sector, strong collaborations are required between regulatory agencies to facilitate ease of doing business, and between businesses to pool resources required for delivering complex projects
Ahmed stated that the target of the federal government is “to achieve a fully liberalized and matured market for all petroleum products and natural gas, where the market fundamentals lead to robust price discovery and attractive investment opportunities.”
“The federal government is deepening the liberalization of the energy market through robust policies, and provision of generous incentives to encourage investment by both domestic and international companies,” he added.
Chairman of the Advisory Board, OTL Africa Downstream Energy Week, Mr. Adetunji Oyebanji, stated that the recent full deregulation of Nigeria’s downstream sector, along with the shift to a market-based gasoline pricing system, marks a fundamental change in our market.
He stated that the commencement of operation of the 650,000 barrels per day Dangote refinery “is not only a testament to Nigeria’s industrial capacity but a transformative development for the entire West African region.”
