The federal government, through the Nigerian Midstream and Downstream Petroleum Authority, has issued licences for nine modular refineries.
The Chief Executive of NMDPRA, Farouk Ahmed, said this on Monday at the 2024 Oil Trading & Logistics Africa Downstream Energy Week in Lagos.
He said the licences were issued under President Bola Tinubu’s administration in the past year.
According to him, Nigeria’s refining capacity has been increasing under the current administration, especially with the Dangote refinery coming on stream.
He said the NMDPRA issued nine licences to establish modular refineries, seven licences to construct, and four licences to operate modular refineries.
“Over the course of the last year, the NMDORA has revised and consolidated its regulations through strategic industry stakeholder engagements with a view to streamlining the regulatory framework for ease of doing business and compliance. This is complemented by the issuance of relevant guidelines on automation for processes to strengthen regulatory clarity and enhance compliance.
“Our refinery sector has been expanding rapidly with the issuance of nine licences to establish seven licences to construct and four licences to operate modular refineries,” he stated.
Ahmed acknowledged the leadership of Tinubu “in enhancing the investment environment of the mainstream industrial sector through the novel sectoral policies that have been in place in the last 18 months”.
According to him, the bold reforms of the President have transformed the sector into an attractive investment destination that supports profitability and viable business ventures in the oil and gas industries.
The NMDPRA boss maintained that under the current administration and the ministers in charge of the oil and gas sectors, Nigeria is poised to actualise the target of 3 million barrels per day of crude oil production and the projected 10 billion standard cubic feet of gas per day for domestic utilisation.
He said Nigeria will also boost its proposed domestic refining capacity, leading to Nigeria becoming a net exporter of petroleum products.
“Indeed, the Nigerian petroleum industry collector has all the complements of enabling structures to facilitate its growth and success. The NMDPRA is fully committed to supporting all the reform initiatives of Mr. President and the mainstream and downstream subsector through enhanced regulatory processes, including efficient issuance of licences, permits, and provisions,” he declared.
The regulator said the Nigerian petrol market is indeed undergoing major transformations for liberalisation.
“Our inspired target is to achieve a fully liberalised and mature market for all petroleum products and natural gas, where the market fundamentals lead to robust price discovery and attractive investment opportunities. The Federal Government is deepening the liberalisation of the energy market through robust policies and provision of generous incentives to increase investment by both domestic and international companies,” he added.
Meanwhile, Ahmed said the Dangote refinery will boost fuel supply once it is fully completed and licensed.
“Dangote Petroleum Refinery and Petrochemical Limited came on stream in February 2024 for the production of some petroleum products such as automotive gas oil and aviation fuel.
“The refinery commenced production and supply of Premium Motor Spirit in September 2024. It is expected that supply from the factory will improve significantly when it is fully completed and licensed,” he said.
Speaking further, Ahmed urged stakeholders for a comprehensive domestic pricing framework for Liquefied Petroleum Gas to make the product more accessible and affordable for consumers nationwide.
He emphasised that in an attempt to make cooking gas affordable, the agency has been engaging stakeholders on domesticating LPG produced in countries by producers like Chevron Nigeria Ltd and Mobil Producing Nigeria Ltd, the Nigerian LNG and others.
“NMDPRA will engage stakeholders in the development of domestic LPG pricing framework in order to make the product readily available and affordable for the consumers. With regards to alliances, we will continue our quarterly domain-specific engagements with key stakeholders and on-demand engagements with other relevant parties to address ongoing and emerging concerns,” he said.
Ahmed maintained that the federal government is deepening the liberalisation of the energy market through robust policies and provisions of generous incentives to address investment by both domestic and international companies.
He added that the gas sector holds 16 billion standard cubic feet per day licensed processing capacity, 5 billion standard cubic feet per day licensed transportation capacity, and about 1.5 billion standard cubic feet per day licensed distribution capacity.
“Nigeria is poised to actualise the targets of 2 million barrels per liquid oil production, projected 10 billion standard cubic feet of gas target for domestic utilisation, and a robust domestic refining capacity, leading Nigeria to become a net exporter of petroleum products,” he said. [The Punch]
