The Nigerian National Petroleum Corporation (NNPC) says Nigerians will enjoy cheap petrol in the next three years when condensate refineries and private refineries come on stream just as it ruled out concession of the nation’s refineries.
The Group Managing Director of NNPC, Malam Mele Kyari, said the country would no longer import petrol when the refineries become operational.
Persecondnews recalls that Dangote private refinery, a 650,000-barrel per day integrated refinery and petrochemical project under construction in the Lekki Free Zone in Lagos, is expected to be fully operational mid-2021.
The refinery will process a variety of light and medium grades of crude to produce Euro-V quality clean fuels including gasoline and diesel as well as jet fuel and polypropylene.
Also, NNPC had in August 2018 announced plans to build two condensate refineries with a total refining capacity of 200,000 barrels per day aimed at increasing the nation’s revenue base and eliminate the importation of petroleum products.
Condensate is a mixture of light liquid hydrocarbons, similar to a very light (high API) crude oil. Condensate can be processed in a refinery if blended with more conventional crude. Alternatively, it can be sent directly to a condensate splitter for separation into its components.
Kyari, speaking on Channels TV on Wednesday evening, explained that the four refineries were shut down because vandals had compromised them by siphoning petrol from burst pipes.
According to him, delivering crude to the refineries will be a huge loss as the refined product will be stolen by pipeline vandals.
“Government is encouraging investors to build refineries. In three years at the most with condensate refineries, the country will have cheap fuel.
“We are adopting a Build-Operate and Transfer (BOT) strategy on the refineries for their rehabilitation, resulting in private capital. We will not concession them,’’ Persecomndnews quotes the NNPC GMD as saying in response to a question.
On whether the equalization fund will still be retained under the current deregulation of the downstream sector, Kyari said the bridging cost being financed through the fund to take petrol to far-flung areas of the country from the depots in Lagos and others “would be taken out after the enabling legislation’’.
“There will be market-driven prices then. You need to use trucks to deliver products to places more than 200 kilometers from the ports.’’
On the update on oil exploration in the Northern parts of the country, Kyari said oil had been found in Benue trough, Chad Basin, and others, adding “ we will make the announcement at the appropriate time.’’