To meet the growing demand of her 17.3 million Metric tons of petroleum products, Nigeria needs to invest about $3.09 billion in refinery projects.

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mele Kyari, who disclosed this at the 15th Oil Trading and Logistics (OTL) Africa Downstream Week, said Nigeria’s petroleum product demand would grow to 17.3 million metric tons by 2025, up from the 15.1 million MT in 2020. He said investment opportunities worth nearly $3.097 billion currently exist in the country’s condensate refineries’ space. According to him, between $1.6 billion and $2.7 billion was required by the corporation to improve the supply and distribution of petroleum products, revamp Liquefied Petroleum Gas (LPG) infrastructure, and build Compressed Natural Gas (CNG) plants in the country.

Kyari, who was represented at the event by the Group Executive Director, Downstream, NNPC, Mr. Adetunji Adeyemi, projected that the country would need a refining capacity of about 1.52 million barrels per day (MBPSD) to meet its petrol requirement in the next four years. He said, “As Nigeria’s demand for petroleum products is expected to grow from 15.1 million MT in 2020 to 17.3 million MT by 2025, the country needs a refining capacity of about 1.52 million barrels per stream day (MBPSD), to meet its PMS requirement in the next four years. “The NNPC refineries’ 445,000 BPSD and Dangote Refinery’s 650,000 BPSD running at 60 per cent and nameplate capacity, respectively, would supply 76 per cent of that requirement, leaving 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 PHRC and WRPC, 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. The co-location and condensate refineries will close the petrol supply-demand gap and create positive returns to the investors. “About $3.097 billion investment opportunities exist in condensate refineries while $1.6 – $2.7 billion is required by NNPC to improve the supply and distribution petroleum of products, revamp LPG infrastructure and build CNG plants.” he said. Kyari said the demand for natural gas could grow about four times over the next decade, increasing from 4.8 billion cubic feet per day (bcf/d) in 2020 to between 10 – 23 bcf/d in 2030.