George Maher-Bonnett of Argus Media projects a notable expansion for Nigeria’s modular refining sector next year, with seven new refineries adding a combined capacity of 83,000 barrels per day.
Maher-Bonnett noted that the planned expansion will boost local refining capacity while increasing the contribution of smaller facilities to the nation’s petroleum product supply.
He shared the analysis during a presentation at the OTL Africa Downstream conference on Thursday in Lagos, detailing shifts in Nigeria’s petroleum market driven by expanding local refining and falling domestic fuel consumption.
Speaking during his presentation, titled African Energy Outlook, Maher-Bonnett stated that four modular refineries with a combined capacity of 32,000 barrels per day operated in Nigeria as of September.
“Four modular refineries operating in September, total 32,000 b/d capacity,” he said.
He added that seven additional modular refineries with a total capacity of 83,000 barrels per day will come online next year.
With these planned additions, Nigeria’s modular refining capacity will expand to more than 2.5 times the combined capacity of the four facilities operational in September.
The presentation however omitted the names, locations, and owners of the proposed refineries. It also provided no breakdown of their individual capacities or target commissioning dates.
Furthermore, the report projected an expanding role for modular refineries in the domestic market, noting that Nigeria’s self-sufficiency continues to grow as the Dangote refinery ramps up production.
Backstory…
For decades, the country relied heavily on imported refined products because its government-owned refineries in Port Harcourt, Warri and Kaduna operated below capacity or remained shut down for extended periods.
The situation contributed to fuel shortages, pressure on foreign exchange and repeated government expenditure on petroleum product imports.
Efforts to address the problem have included the promotion of modular refineries, which are smaller-scale facilities designed to process crude oil closer to production areas, particularly in the Niger Delta.
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