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Targeting 3 million barrels of crude oil/day and 10 billion cubic feet of gas usage
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday released an update on Nigeria’s local refining capacity, with the issuance of nine Establishment Licenses (LTE), seven Construction Licenses (LTCS) and four Construction Permits. It is expected that this will expand. Modular refinery operations (LTO).
The authority’s chief executive, Engineer Farooq Ahmed, on Monday, in his keynote address at the 18th OTL Africa Downstream Energy Week Summit in Lagos, said that 3 million barrels per day of crude oil production and 10 billion standard cubic feet per day He said this while reiterating FG’s commitment to achieving domestic gas utilization.
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The conference was themed “Alliance for Growth” and brought together industry players.
Mr. Ahmed said, “Our refining division is expanding rapidly, with 9 valid Establishment Licenses (LTEs), 7 Licenses to Construction (LTCs) and 4 LTOs issued for modular refineries. are.
“Dangote Petroleum Refinery and Petrochemicals (DPRP) commenced operations in February 2024 and produced some petroleum products such as AGO, ATK. The refinery will resume production and supply of PMS in September 2024. The supply from the refinery is expected to improve when it is fully completed and approved. ”
He said Nigeria will achieve its goal of “increasing domestic refining capacity, with an estimated 3 million barrels per day of crude oil production and 10 billion standard cubic feet per day of domestic gas utilization, positioning Nigeria as a net exporter of petroleum products.” I’m ready,” he said. ”
According to him, the gas sector has processing capacity of 16 BSCF/D approval, transportation capacity of 5 BSCF/D approval and distribution capacity of 1.5 BSCFD approval.
“With the overall transformation of the natural gas sector, each sub-sector is rapidly expanding.
“NMDPRA continues to take all necessary steps to fully realize PIA’s aspirations. These include ensuring quality and safety in the industry, engaging strategic stakeholders, This includes providing regulatory support for key government initiatives such as the Pi-CNG programme.”
He said the midstream and downstream sectors require strong cooperation between regulators to facilitate ease of doing business and between companies to pool the resources needed to implement complex projects. He pointed out that.
Ahmed said the federal government’s goal is to “achieve a fully liberalized and mature market for all petroleum products and natural gas, where market fundamentals lead to solid price discovery and attractive investment opportunities.” said.
He added: “The federal government is deepening the liberalization of energy markets through strong policies and the provision of generous incentives to encourage investment by domestic and foreign companies.”
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Mr. Adetunji Oyebunji, Chairman of OTL Africa Downstream Energy Week Advisory Committee, said the recent complete deregulation of Nigeria’s downstream sector and the transition to a market-based petrol pricing system represents a fundamental shift in our country’s market. He said that it shows that.
He said the commissioning of the 650,000 barrels per day Dangote refinery was “not only a testament to Nigeria’s industrial capabilities, but also a transformative development for the entire West African region.”
