Fuel Importation In Nigeria To Stop In June 2023 -NNPC
Importation of petroleum products into Nigeria will be stopped by mid-2023, the Nigerian National Petroleum Company (NNPC Ltd.) said.
This was announced by Mr Mele Kyari, Group Chief Executive Officer of NNPC Ltd. at the State House Ministerial Briefing organised by the Presidential Communications Team, on Tuesday in Abuja.
According to him, the collective output of Nigeria’s refineries being transformed and Dangote refinery would be sufficient to quit importation.
In his words: “Even if all the refineries are working today, you will still have a net deficit of Premium Motor Spirit (PMS) to import into this country. This is what it means, because our population has grown; demand has grown; and the middle class has grown.
“I am sure everybody here owns one or two cars; and as such, the volume of petroleum products we require in this country has grown exponentially.”
Kyari noted that this was because there was clearly an exponential growth in our need for PMS.
“So, even if they all come, we are going to stop importation of petroleum products, but happily also, NNPC Ltd owns 20 per cent equity in the Dangote Refinery and we are very proud of this,” he added.
He added that aside from owning 20 per cent equity in Dangote Refinery, NNPC Ltd had the right of first refusal to supply crude oil to that plant.
“But, we saw this energy transition challenge coming; we knew that time will come when you will look for people who will buy your crude oil, you will not find.
“And that means we have locked down the ability to sell crude oil for 33,000 barrels minimum by right for the next 20 years.
“By right also, we have access to 20 per cent of the production from that plant,” Kyari said.
Kyari asserted optimism that Dangote Refinery would become operational by the middle of 2023.
He said the refinery has a production capacity of 650, 000 barrels per day, with a different technology.
“Which means that, it can crack the crude in a manner that you can have more gasoline than a typical refinery; that means the refinery has the ability to produce up to 50 million litres of PMS.
“So, the combination of that and our own ability to bring back our refinery will completely eliminate any importation of petroleum products into this country.
“This is very practical; this is possible; as a matter of fact, what we have done with our own refineries and the Dangote Refinery with many other small initiatives we have put in place—small, modular, condensate refineries that we are building.
”If that happens, we are very optimistic it will happen; you will see that this country will now be a net exporter.’’ he added.
“So, you will not have need for the importation of petroleum products into this country by the middle of next year,’’ he said.