News Post
Nigeria may build small refineries to boost domestic fuel supply
Nigerian National Petroleum Corp.may build refineries of up to 25,000 b/d capacity to boost domestic fuel supply after failing to attract investors to build bigger refineries.
The government is working on a policy to develop modular refineries, of 10,000-25,000 bpd. This will be implemented once NNPC are able to finalize the issue of the economics, the environmental impact assessment, and other logistics.
While investors have been given licenses to build refineries, they have held back because of factors including stalled reform in the oil sector, the regulated price regime, and the uncertainty of revenue expectations.
Gasoline consumption in Africa's biggest oil producing nation has risen above 40 million liters/day from 17 million liters/d in 2,000, Okon said, adding local refining capacity has not kept pace with that growth.
Nigeria has four state-run refineries, two in its main Port Harcourt oil hub, one in the Niger Delta town of Warri, and one in Kaduna in the north, with a combined nameplate capacity of 445,000 b/d capacity.
They are, however, poorly maintained and Nigeria imports more than 80% of its gasoline needs.
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