DMEA: Nigeria’s grand refining plans

This week, DMEA looks at Nigeria’s ambitious plans for refining expansion amid calls for the build-out of the country’s midstream.

Looking to support local communities, create jobs, shelter the country from fuel market volatility and wean itself off costly subsidies and fuel imports, the Nigerian Content Development and Monitoring Board (NCDMB) has announced plans to increase refining capacity to 1.4mn barrels per day by 2027 from the current level of around 16,000 bpd.

While almost 80% of the increase is seen coming from the rehabilitation of four state-owned refineries and the launch of the giant Dangote unit, a hike of nearly 300,000 bpd is envisaged from smaller private plants.

Outlining the rehabilitation of state-run refineries and the provision of ‘strategic support’ for the development of privately owned greenfield and modular units, NCDMB executive secretary Simbi Wabote said: “combined refining capacity of more than 1.4mn bpd is expected from these focus areas within the next five years.”

Wabote continued: “About 400,000 bpd is expected from the rehabilitation of NNPC refineries in Port Harcourt, Warri and Kaduna using target performance of not less than ninety percent of nameplate capacity. The greenfield element of the roadmap covers the 650,000 bpd Dangote Refinery in Lagos and the 200,000 bpd BUA Refinery in Akwa Ibom.”

Meanwhile, other officials have pointed to the opportunities for Nigeria in the midstream and from the development and harnessing of its large gas reserves.