•Company saves $17 billion in African gasoline product imports
Written by Udeme Akpan
In order to move from a net importer to a net exporter of petroleum products, Nigeria needs to strengthen its crude oil production capacity and effectively manage crude oil supplies to ensure adequate feedstock for domestic refineries. said Aliko Dangote, Chairman of Dangote Refinery and Petrochemicals Company. he said.
Dangote made this assertion in a keynote address at a summit held by the Crude Oil Refinery Owners Association of Nigeria (CORAN) in Lagos.
The event brought together senior government officials and key stakeholders from the midstream and downstream sectors.
Dangote mentioned Nigeria’s potential as a refining hub, noting that Africa produces more than 3.4 million barrels of crude oil per day, but imports about 3 million barrels of petroleum products per day. expressed concern.
He pointed out that these imports, mainly from Europe, Russia and other regions, are estimated to cost around $17 billion in 2023.
He said Nigeria could take advantage of this situation to become a net exporter of refined petroleum products as the country would be able to serve the market more competitively.
“Both crude oil and petroleum products will travel shorter distances. The logistics costs of floating storage will be eliminated and countries will be able to purchase the petroleum products they need just in time.
“Nigeria and Africa will become completely self-sufficient and we will be able to keep all our value within the country. We have done it with cement and we will definitely do it with petroleum products as well. You can.
“It is noteworthy that the Dangote refinery already produces enough diesel and jet fuel to meet Nigeria’s needs.The company recently started producing PMS to meet Nigeria’s needs. We plan to ramp up production soon.
“Our sophisticated products are exported to diverse markets including Europe, Brazil, UK, USA, Singapore and South Korea,” he added.
Mansoor Ahmed, Group Executive Director, Dangote Industries, is represented by Engr. To seize this opportunity, Nigeria needs to develop refining capacity of 1.5 million barrels per day and prioritize domestic crude oil supply obligations. he emphasized.
He urged the government to recognize the current and future challenges and encourage investors, contrasting it with the Dangote refinery, which was built without government incentives.
“It’s unfortunate that countries like Norway are putting their oil revenues into a future fund, while in Africa we are spending our future oil revenues,” he said. Fulfilling domestic crude oil supply obligations must also be prioritized.
“Crude oil production capacity needs to be expanded to support demand with new refining capacity. The government of President Bola Ahmed Tinubu is committed to achieving this through the rapid sale of IOC and other initiatives. We are taking proactive steps.”
Dangote stressed that global developments in the oil sector, particularly in Europe, will disrupt the historic trade flows of refined petroleum products in Africa, adding that Nigeria has this opportunity to become a significant player in the global oil industry. He said that he is in a unique position to take advantage of the
“As an active exporter of refined products, Nigeria will witness an improvement in its trade balance and generate much-needed foreign exchange,” he said while calling for consultation, coordination and cooperation among stakeholders. said. There is no doubt about Nigeria’s potential as a refining hub. Let’s work together to make it happen. ”
The leading businessman noted that the summit’s theme of “making Nigeria a net exporter of petroleum products” would have seemed unrealistic a few years ago, making Nigeria the largest oil producer in Africa. He added that despite being a country, the country has historically relied on imported refined oil. product needs.
However, he said Dangote Petroleum Refining and Petrochemicals Company is poised to transform Nigeria from a “net importer” to a “net exporter” of refined petroleum products and establish itself as an emerging player in global downstream trade flows. He emphasized that it was done. The refined products have already been exported to various markets such as Europe, Brazil, UK, USA, Singapore and South Korea.
Abdulrazaq Issa, Chairman of IPPG/Waltersmith Refinery and Petrochemicals Ltd., commended Dangote for this transformation, which will ensure crude oil availability, compliance with domestic crude oil supply obligations, and effective pricing and monitoring. It called on the government to support domestic refiners by implementing measures. To prevent smuggling.
Veteran Emmanuel Iheanacho, Chairman of the CORAN Board of Directors and CEO of Integrated Oil and Gas, said the Dangote refinery has set high standards by producing Euro V products, thereby protecting the public from exposure to high sulfur products. He said there was.
He pointed out that turning Nigeria into a net exporter would bring many benefits, but reiterated the need for increased investment to increase crude oil production, adding that Nigeria’s failure to meet OPEC quotas would result in an annual He lamented the loss of approximately $83 billion.
While acknowledging that tank farms remain essential despite local refining, Mr. Iheanacho said the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is now able to meet local demand. ) to consider revoking their import licenses.
Chairman of Nigeria’s Major Energy Market Merchants Association, MEMAN, Huub Stockman, said Nigeria is becoming Africa’s refining powerhouse, which will give a significant boost to the economy.
CORAN Chairman Momo Oyalequa also expressed concern over challenges related to crude oil supply and said domestic refiners would work with regulators and stakeholders to address these issues.
Minister of Petroleum Resources (Petroleum), Senator Heineken Lopkovyli, pledged that the government would continue to improve the framework to strengthen crude oil production and support domestic refineries.
Dr. Doris Uzoka Anite, Minister of Industry, Trade and Investment, highlighted the efforts of the Tinubu-led administration to ensure value addition of mineral resources before export.
