NNPC to bridge products supply gap – Baru

NNPC to bridge products supply gap – Baru

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, says the corporation plans to bridge the gap of petroleum products supply in the country.
   
   
   
       
       
           
               
                   

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, says the corporation plans to bridge the gap of petroleum products supply in the country.

               
           
               
                   

Baru disclosed this while fielding questions from journalists after a facility tour of Lee Engineering and construction Firm, in Warri Delta, on Saturday.

               
           
               
                   

He said that with the Nigeria’s projected population growth of 230 million by 2025, there was the need to work hard to ensure the country meets the projected product supply gap.

               
           
               
                   

He said that the coming on stream of Dangote Refinery and the co-location of refineries from Europe to the country was part of the efforts of the corporation to meet the supply gap.

               
           
               
                   

                                   

Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru (DailyPost)

               

               
           
               
                   

"We are focusing on 2025, to see what the supply gap is and how to meet it.

               
           
               
                   

“Obviously, with the coming of Dangote Refinery and full rehabilitation of our refineries, there will be supply of 427,000 barrels per day of refining capacity.

               
           
               
                   

This will help us to be able to meet our demands based on the projection of the growth of our population from 180 million we had about four years ago which is projected to go up to about 230 million people with corresponding consumption,’’ he said.

               
           
               
                   

“He said the corporation was also looking at co-locating two refineries from Europe as part of its programme to meet the supply demand.

               
           
               
                   

“There are private sector players that have offered that they want to bring some refineries that will be moved from other Europeans countries into Nigeria.

               
           
               
                   

“One will be in Port Harcourt to produce about 110,000 barrels per day another one in Warri to produce about 115,000 barrel per day.

               
           
               
                   

“But still there will be a gap. If you add that there will be about 200 to 210,000 gap, which NNPC has also looked at,’’ he said .

               
           
               
                   

Baru noted that the corporation was also looking at condensate production to help mitigate the situation.

               
           
               
                   

Condensate is one of the lightest and most valuable crude oil which can be used to produce petrol, jet fuel, diesel and heating fuel.

               
           
               
                   

“We have a lot of condensate around the country particularly in certain cluster both in the western and eastern part of Delta.

               
           
               
                   

“The intention is that we put in with the private sector, we sensitize them, we have done the study, we have seen it is feasible and we are working on full feasibility study so that we can get the private sector to come.

               
           
               
                   

`If they wish they can take the full lead in establishing the condensate and refining, if not, we can do that, so that we can establish another 200 to 215,000 barrel per day through condensate refinery,’’ he added.

               
           
               
                   

The GMD noted that the country could get condensates that could augment the overall supply saying “ we will be demand neutral in terms of meeting our demand’’.

               
           
               
                   

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He further noted that the additional advantage with local refining was localisation in terms of domestic refining adding that most of the crude oil produced in Nigeria would remain in Nigeria.

               
           
               
                   

“So beyond 2025, our plans is to see that more refineries are in place,’’ he said.

               
           
               
                   

                 

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Source: NNPC to bridge products supply gap – Baru

- gist culled from pulseng