The Organization of Petroleum Exporting Countries (OPEC) has said the much-awaited Dangote Refinery’s refining capacity would account for more than half of Africa’s expected total additional distillations in the medium term.
The international oil cartel which stated this in its latest World Oil Outlook (WOO), disclosed that the addition was estimated at 1.2 million barrels per day in the medium term, stressing that the refinery which has a capacity of 650, 000 barrels per day, would take the lion’s share.
Apart from the asset owned by Africa’s richest man, also expected to begin production in the near future are that 100 tb/d refinery to be built in Soyo, Angola, the 110 tb/d Hassi Messaoud refinery expansion in Algeria, the 160 tb/ d Midor refinery expansion in Egypt, the 10 tb/d Brahms modular refinery in Guinea and the 110 tb/d Pointe Noire II refinery in the Republic of Congo.
In addition, Ghana and Senegal are also expected to commission new units, most of which are modular, to address fast-growing demand in Africa.
“In Africa, medium-term distillation additions are estimated at around 1.2 mb/d. More than a half of this number is accounted for by Nigeria’s Dangote refinery (650 tb/d).
“According to recent reports, its commissioning is likely to be delayed from 2022 to 2023, partly due to financial issues. Furthermore, Nigeria is likely to see the addition of a number of small modular refineries with capacities of up to 20 tb/d over the medium-term, thus adding much needed capacity in the country,” OPEC stressed.
“Elsewhere, a new 100 tb/d refinery is likely to be built in Soyo, Angola in 2025. In North Africa, a modest expansion is expected in Algeria (Hassi Messaoud) and Egypt (Midor and Assiut).
“Finally, several sub-Saharan countries, including Ghana, Guinea, Senegal and the Republic of the Congo are expected to commission new units, most of which are modular. With these expansions, the region will look to address fast growing demand, but it could also potentially reduce product imports from other regions,” OPEC noted.
In addition to the Dangote refinery, rehabilitation is going on in Warri and Port Harcourt and work on the Kaduna refinery will start soon, with the report stating that if the refurbishments succeed, Africa could expect even higher outputs and utilization rates in the long term.
“These additions could lead to refinery throughputs increase from 1.8 mb/d in 2021 to 4.8 mb/d in 2045, based on strong demand growth and refining capacity additions in both the medium- and long-term,” it added.
OPEC acknowledged that the downstream market has tightened significantly over the last year, driven by strong oil demand growth, a decline in available refining capacity and geopolitical uncertainties.
During the medium-term (2022-2027) it noted that around 7.3 mb/d of the Middle East (1.6 mb/d) and Africa (1.2 mb/d).
“Refining capacity additions in other regions are minor and mostly limited to the expansion of existing refineries,” it added.
In the long-term, (2022-2045) OPEC stated that global refining additions are projected at 15.5 mb/d, with a significant slowdown in the rate of additions towards the end of the projection period.
“Almost 90 percent of additions are located in the Asia-Pacific, the Middle East and Africa,” he said.
The medium-term balance, it stressed, points to a tightening downstream market relative to 2021, with the estimated deficit of potential refining capacity relative to required refining capacity set to peak around 2.7 mb/d in 2023 and 2024.
“Due to the demand growth slowdown and continuous capacity additions, the deficit is set to decline to around 1.4 mb/d in 2027,” the report said.
The Dangote integrated refinery and petrochemical complex in the Lekki Free Zone, near Lagos, Nigeria, is expected to be the world’s biggest single-train facility, upon commissioning.
Estimated to cost about $20 billion, the refinery will produce Euro-V quality petroleum and diesel, as well as jet fuel and polypropylene and will likely generate 4,000 direct and 145,000 indirect jobs.
The new refinery will double Nigeria’s refining capacity and help in meeting the increasing demand for fuels, while providing cost and foreign exchange savings. It is estimated to have an annual refining capacity of 10.4 million tonnes of petroleum.
Nigeria’s Port Harcourt Refinery Will Start Working In December – NNPCL Boss
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari has confirmed that the Port Harcourt refinery will start working in December 2023.
Kyari made the confirmation on Thursday during his meeting with the Speaker of the House of Representatives, Tajudeen Abbas.
He also informed Abbas that the rehabilitation of the state-run refineries is in serious progress, saying it would put an end to the importation of petrol by December 2024.
“I can confirm to you that by the end of December this year, we will start the Port Harcourt refinery,” Kyari said.
“Early in the first quarter of 2024, we will start the Warri refinery and by the end of 2024, the Kaduna refinery will come into operation.
“This is the commitment we are giving today, and you can hold us accountable for this.”
Kyari added that in 2024, many of the initiatives including the rehabilitation of Nigeria’s refineries and also the efforts of small-scale refineries as well as the upcoming Dangote refinery, will make the country a net exporter of petroleum products in 2024.
“We will no longer be talking about fuel importation by the end of 2024. I am very optimistic that this will crystallize,” the NNPCL CEO said.
Dollar Tumbles As Naira Gains At Parallel Market
The naira sustained its appreciation against the United States dollar at the parallel market as it appreciated on Friday, from N1,160 to N1,155.
This represents a 0.43 percent (N5) gain than N1,160 exchanged on Thursday at the parallel market.
It could be recalled that the naira had steadied in the parallel market on Wednesday and Thursday as it sells for N1,160 respectively.
However, the forex turnover on Thursday hit $105.50 million according to data from NAFEM, the Nigerian Autonomous Foreign Exchange Market, the market trading segment for investors, Exporters and end-users.
The turnover represents the amount of dollars traded at a particular trading day.
Although the rate is still unpalatable to the business community and Nigerians at large but a management consultant, Babatunde Adeniji, said the naira crisis is being largely driven by speculation following the country’s liquidity challenge.
“In terms of price, for the short time it is speculation that drives things. If you are a trader and you want to take a bet, with the level of distrust of the government, with no clear visible assurance of where the dollar is coming from to stabilise the naira, which position would you take? You are bound to take the position skewed towards the dollar,” he stated.
He said the country would begin to heave a sigh of relief when the authorities can pay up all the backlog of foreign exchange forwards with sufficient liquidity to meet pending obligations.
“Nigeria, as a country, does not have enough dollars to meet its promise. If we don’t do things that are substantial and visible, all that grammar would not help,” he said.
FG commissions Abuja Market plaza in Cameroon
The Consul-General of Nigeria to Douala, the Republic of Cameroon, Ambassador (HRM) Queen Efe A. Clark-Omeru has commissioned the multimillion-naira Abuja Market plaza built in Douala, Cameroon by eminent Nigerian Alhaji Abba Mustafa.
The Consul General, who commissioned the projects in Douala, commended the Nigerian-Adamawa philanthropist for investing in such a massive project in a neighboring country like Cameroon which has over five million Nigerian migrants.
According to the Nigerian Diplomat, the facility is expected to create numerous business opportunities by generating revenue rents and creating job opportunities for both Nigerians and Cameroonians. Additionally, it will enhance the beauty of Douala city, attracting more tourists and strengthening Foreign Direct Investment (FDI).
The Nigerian Diplomat expressed hopes that the new building would further help strengthen the relationship between Cameroon and Nigeria, extending a hand of prayers during the commissioning ceremony.
“Alhaji Abba, you are a great man, it takes a great heart to think beyond yourself and invest in the huge facility, not just for you but for the people of Adamawa state, the whole Nigeria, and Cameroon, history will not forget you,” said Amb. Clark -Omeru
“This is a good day for Nigerians, for Cameroonians and for the people of Adamawa State in Nigeria, I am happy to be here and to be part of this joy of today, Nigerians are happy, Cameroonians are happy as well as the Adamawa indigenes,” she said.
“Our dear Father, Abba Mustafa, you have done very well with this massive building, may the Almighty God continue to bless you, may he continue to reward you abundantly and may he continue to keep you for the good of mankind.”
The Consul General praised the Cameroon authorities for fostering a spirit of brotherhood between Nigeria and Cameroon by offering a great opportunity to the distinguished Nigerian, Alhaji Abba.
She continued: “As we are celebrating this great achievement, the fact still remains that this facility is a representation of close collaboration and one cordial relationship between Alhaji Abba Mustafa and our host authorities which provided a friendly environment and gradually the opportunity for him to purchase the land. If not for the good reputation and integrity that Alhaji Mustafa is recognized for, there is no way the host authorities would have given him the opportunity to mark this great landmark. I am appealing to every Nigerian in Cameroon to be a good ambassador,” she concluded.
Alhaji Abba Mustafa thanked the Nigeria Consul General for honoring the invitation and supporting Nigerians in Cameroon ultimately.
“On behalf of my humble self and the people of Adamawa State Union Douala, I want to thank the Consul-General of Nigeria to Douala, the Republic of Cameroon, Ambassador (HRM) Queen Efe A. Clark-Omeru for making time to honor this great occasion. I am also using this opportunity to thank the President and members of the Nigerian Community in Douala and the royal fathers who came as well as everybody who grace this day, May you all return home safely, thank you very much.
Meanwhile, Ismaila Adegbola, the Chief Executive Officer ND Group, has praised Alhaji Abba for investing in Cameroon and building such an impressive structure that would provide employment opportunities to many. Adegbola has also urged the Nigerian government to recognize Alhaji Abba’s contributions to the country by including him in the nation’s historical book.
“This is a milestone achievement for Nigeria as a country, We are calling on the Federal Government to decorate this great man with a national award for bringing smiles and success into the lives of over five million Nigerians in Cameroon. »
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