Nigeria needs a refining capacity of about 1.52 million barrels per stream day (MBPSD) to meet its petrol requirement in the next four years.

Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyari, who said this noted that the Corporation’s 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 Nigeria’s PMS requirement.

According to him, this will leave a shortfall of about 17 million litres of PMS daily.

Kyari spoke in a keynote address at the 15th Oil Trading and Logistics (OTL) Africa Petroleum Downstream Expo 2021 on Tuesday in Lagos.

The theme of the conference is ‘Nigerian Downstream Oil and Gas Sector in Transition: Getting Set.’

Kyari, who was represented by Mr. Adetunji Adeyemi, Group Executive Director, Downstream of the NNPC, said Nigeria’s demand for petroleum products is expected to grow from 15.1 million metric tonnes in 2020 to 17.3 million metric tonnes by 2025.

He said: “NNPC is adding 215,000 BPSD of refining capacity through private sector driven co-location at the existing facilities in Port Harcourt Refinery and Warri Refinery respectively.

“Modular refineries are also adding capacities such as the 5,000 BPSD Walter smith 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.”

Kyari said the co-location and condensate refineries would close the PMS supply-demand gap and create positive returns to the investors.

He said about $3.097 billion investment opportunities existed in condensate refineries while $1.6 – $2.7 billion was required by NNPC to improve the supply and distribution of petroleum of products.

The GMD said that it would also be used to revamp Liquefied Petroleum Gas infrastructure and build Compressed Natural Gas plants.

He said: “Key pipeline projects are on-going to assure delivery of the gas to the demand nodes.

“The Obiafu-Obrikon-Oben (OB3) project which brings gas from East to West is nearing completion. The 614km Ajaokuta, Kaduna, Kano (AKK) project, which was inaugurated by Mr. President in June 2020, is progressing very well.

“These could add up to $40 billion to annual Gross Domestic Product and create additional six million jobs.”

Also speaking, Governor Babajide Sanwo-Olu of Lagos said Nigeria needs to reposition its oil and gas sector due to the global energy transition.

Sanwo-Olu, who was represented by Mr Olalere Odusote, the State Commissioner for Energy and Mineral Resources, emphasised the need for more collaboration among stakeholders.

In his address, Dr. Emeka Akabogu, Chairman, OTL Africa Downstream, said that the COVID-19 pandemic and global energy transition have changed the dynamics of the petroleum sector.