Nigeria to leverage condensate refineries to become net exporter of petrol

In a bid to advance the nation’s commitment to refining fuel, the Nigerian National Petroleum Corporation (NNPC) has disclosed that it is in the process of establishing two new 200,000 barrels-per-day condensate refineries.

According to a statement by NNPC’s Group Managing Director, Mele Kyari, upon completion, the refineries would help transform Nigeria into a net exporter of petroleum products.

While saying the exportation of petroleum products from the condensate refineries would be achieved together with the 445,000 bpd capacity of the existing refineries being refurbished, and the 650,000 bpd Dangote refinery, Kyari expressed confidence that the NNPC’s effort coupled with that of Dangote Group will guarantee energy security for the country.

The statement read, “Our objective is to make Nigeria a net exporter of petroleum products and you can only achieve that by complementing each other, both the public and the private sector.

“We are going to do more and we actually need more of these private sector refineries for Nigeria to become a net exporter of gasoline (petrol) and other associated products.”

What you should know

Condensate refineries are different from conventional refineries. They do not refine crude oil and they often produce only a single product, mostly Premium Motor Spirit, popularly known as petrol.

This announcement of plans to establish two new 200,000 barrels-per-day condensate refineries comes shortly after news broke out on NNPC’s collaboration with Saudi Aramco to fix refineries in the country.

The move, which is in line with the President-Muhammadu Buhari-led administration’s goal, was part of the outcome of President Buhari’s visit to Saudi Arabia where he met with Yasir Al-Rumayyan, Chairman of Aramco and Saudi Arabia’s Public Investment Fund.

Currently, Nigeria’s dormant refineries include the Warri Refining and Petrochemical Company, Kaduna Refining and Petrochemical Company, and Port Harcourt Refining Company.

Nigeria imports 90% of its gasoline and diesel, as the refineries are currently operating below capacity.