NNPC to increase It Production Capacity by 14.6% in 2025
THE demand
for petroleum products in Nigeria will increase to 17.3 million metric tonnes,
MT, from 15.1 MT in 2020, indicating an increase of 14.6 per cent, according to
the Nigerian National Petroleum Corporation, NNPC.The expected
demand, to be fueled mainly by increased utilization of products as the private
and public sectors continue to recover fCoronavirus pandemic, would require
increased
The 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.
”The provision
an enabling environment to encourage the establishment of a sustainable
landscape to set Nigeria as the refining hub of West and Central Africa.
“Creation of a
strong regulator to ensure transparent and tight governance in all downstream operations,
including the compliance to best practices in health, safety and quality
standards.
“Promote a level
playing field to eliminate all forms of anti-competitive behaviour.”
Earlier, in his
keynote address, the Group Managing Director of NNPC, Engr. Mele Kyari, had
noted that about $3.097 billion investment opportunities existed in condensate
refineries, while $1.6 – $2.7 billion was required by NNPC to improve the
supply and distribution of petroleum of products.
He has said:
“The NNPC Refineries’ 445,000 BPSD and Dangote Refinery’s 650,000 BPSD running
at 60 per cent capacity respectively would supply 76 per cent of Nigeria’s PMS
requirement.
“This will leave
a shortfall of about 17 million litres of PMS daily. NNPC is adding 215,000
BPSD of refining capacity through private sector-driven co-location at the
existing facilities in Port Harcourt Refinery and Warri Refinery respectively.
“Modular
refineries are also adding capacities, such as the 5,000 BPSD Waltersmith
refinery which will be upgraded to 50,000 BPSD.
“Additional
250,000 BSPD is expected to come from the Condensate Refineries through the
private sector partnership.”
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