The Nigerian National Petroleum Corporation (NNPC), has revealed that in order to meet the country’s premium motor spirit (PMS) requirement by 2025, Nigeria needs a refining capacity of about 1.52 million barrels per stream day (MBPSD).
According to the NNPC, the country’s petroleum products demand is expected to grow from 13.2 million metric tonnes (MMT) in 2015, to 15.1 MMT in 2020, and then 17.3 MMT by 2025.
The required capacity will include NNPC’s current nameplate capacity of 445,000 BPSD (WRPC, KRPC, and PHRC), and Dangote Refinery’s expected 650,000 BPSD. With all these, there will still be a shortfall of 427,000 BPSD; equivalent to 20 million litres of PMS daily.
Why this matter: In Nigeria, PMS, which is also known as petrol, has the highest demand among all the other refined products. This is because most vehicles in the country are run on the product.
While addressing this need, NNPC‘s Group Managing Director, Maikanti Baru, said the global crude oil production has taken a new turn due to the rise of new production centres across the world, particularly in Africa and Argentina.
What Nigeria must do to meet the requirement
The increasing global competition has made it necessary for Nigeria to unlock new barrels as quickly as possible, in order to stay relevant in the new emerging world; whilst strengthening the country’s oil and gas industry.
Baru, who recently spoke at the Society of Petroleum Engineers’ Oloibiri Lecture Series and Energy Forum (OLEF) 2019, also informed the public that NNPC in collaboration with the private sector is providing clusters for in-country refining capacity.
“NNPC is adding 215,000 BPSD of refining capacity through private sector driven co-location at our existing facilities in Port Harcourt Refining Company (PHRC-100,000 BPSD), and Warri Refining and Petrochemicals Company (WRPC-115,000 BPSD) respectively.
“Additionally, NNPC through its new initiative of establishing Condensate Refineries with private sector participation is providing clusters for in-country refining capacity totalling about 250,000 BSPD, which closes the PMS supply-demand gap, and creates positive margins to the investors.
“For the upstream, we are committed to aggressive production growth, and our target is to achieve a reserve level of 40 billion barrels of crude oil, and producibility of four million barrels of crude oil per day by 2025.”