A recent report on the fourth quarter outlook by the Society of Energy Editors has suggested that revamping and commissioning of the Nigerian National Petroleum Company Limited (NNPC Ltd) refineries may remain a mirage in the fourth quarter (Q4).
It pointed out that the Dangote refinery operations may be impacted by the disputes between its management and NNPC Ltd regarding crude oil supply, petroleum products off-take and pricing which will have a significant impact on fuel supply stability in Q4.
“On the African continent, refining capacity is estimated at 3.6 million barrels per day (mb/d), a reflection of domestic demand growth. In West Africa, new refining capacities will largely use local crude oil supplies, augmented by imports. The revamp of existing refineries, construction of new ones, as well as indications resolve that the opacity surrounding the operations of the NNPC Ltd will continue to dog the company’s operations as well as fuel supply in Q4,” it stated.
The report called for increased local participation in the oil and gas industry, noting that increased local participation may not be due to expansion in oil and gas exploration in-country. Rather, it may be due to continuing divestment from the country by international oil and gas companies.
Meanwhile, the report added that the country’s gas production is expected to grow, driven by increasing demand for Liquefied Natural Gas (LNG) in the international market.
It stressed that the country’s gas master plan is expected to foster gas-to-power and industrial development as the construction of the Nigeria Liquefied Natural Gas (NLNG) Train 7 valued at $4.3 billion remains on track within time and budget.
“The NLNG Train 7 has reached an overall progress of 70 per cent completion, achieving a significant construction milestone of over 45 million man-hours without any Lost Time Injury (LTI). The Nigeria LNG Limited noted that the project was already delivering on one of its benefits with over 9,000 Nigerians working on the project site on Bonny Island, and numerous indirect jobs and businesses emerging and booming as a result of the construction work.
“The NLNG Train 7 project is significant to the Federal Government’s Decade of Gas initiative, it is aligned with Nigeria’s gas development aspirations, as it is both timely and essential to secure the nation’s future, particularly as the global movement towards a net-zero emissions future accelerates. Tremendous progress is expected on the NLNG Train 7 project in Q4,” it stated.
However, the report pointed out that efforts to grow revenue generation from solid minerals and curb artisanal mining are expected to continue as the federal government’s policies aimed at developing the sector may yield positive results.(Guardian)
