See the list of Nigerian refineries set to produce fuel this month

• The Nigerian Upstream Petroleum Regulatory Commission said about eight Nigerian refineries are set to begin production this August
• The refineries, which include the Dangote Refinery, have already increased their demands for crude oil supply to 597,700 barrels daily
• The NUPRC said it could only supply about 177, 777 to the refineries, leading to some importing the product

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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Data from the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) shows that about eight Nigerian refineries are expected to commence operations in August 2024.

The refineries’ combined capacity is estimated at 864,500 barrels per day, which places a huge demand on the NUPRC for crude oil.

NUPRC reports that 8 Nigerian refineries demanded 597.700 barrels of crude oil daily to operate Credit: Bloomberg/Contributor
Source: Getty Images

The list of refineries set to begin production

Some refineries, including the Port Harcourt refinery, Waltersmith Refinery, the Dangote Refinery, and others, demand about 597,700 barrels of crude oil from the oil regulator.

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The refiners increased their domestic crude requirements for the second half of the year to 597,700 barrels per day from 483,000 barrels in the first half of 2024 amid tight supply.

Reuters reports that the NUPRC said on Friday, August 9, 2204, that it could only secure 177,777 barrels from oil producers in the first six months of the year, far below the refineries' requirements.

The facilities’ rising crude needs and oil producers' challenges in meeting the demands have put the Dangote Refinery in conflict with NUPRC.

Dangote Refinery may miss the date for petrol production

The 650,000 bpd-capacity refinery accused the NUPRC of failing to enforce the Petroleum Industry Act (PIA) that requires oil producers to supply crude oil to domestic refineries, stating that the lack of enforcement was raising the plant’s operational costs.

Africa’s largest refinery said it is increasing crude imports due to insufficient domestic supplies, which could impact its ambitions this year and long-term prospects.

Punch reports that the refinery may miss the August date it set to release PMS or petrol into the Nigerian market.

The report said that the refinery’s management disclosed that it needs sufficient crude supply to operate non-stop immediately after it begins producing petrol.

NUPRC's statement projected a national average of crude oil production of 1.7 million barrels per day by December this year, higher than the 1.57 million forecasted for January through July, which producers did not meet.

"This comprehensive data provides insight into the projected crude oil needs for the refineries, crucial for understanding the energy landscape in Nigeria for the second half of 2024," Gbenga Komolafe, head of the NUPRC, said in the statement.

About 52 oil-producing companies, including majors such as TotalEnergies, will supply the crude from their joint venture operations with the Nigerian National Petroleum Company Limited (NNPCL).

The Dangote Refinery set an August date for the release of petrol into the Nigerian market, which experts predict could crash the product's price.

Dangote Refinery may not crash petrol prices.

However, there are concerns that the $19 billion refinery would sell the products at an international rate due to its vast crude oil imports from the US and Brazil.

“We are not that hopeful that the refinery will disrupt the market in terms of price because it will seek to make a profit. What Nigerians should expect is non-interruption in supplies. “It will end the recurrent petrol scarcity that has plagued the country for many years,” said Adeola Yusuf, policy energy analyst,

OPEC makes strong prediction on Dangote Refinery

Legit.ng earlier reported that the Organisation of Petroleum Exporting Countries (OPEC) has predicted that Nigeria’s Dangote Refinery will impact Europe’s oil industry, especially in the Northwest European gasoil market.

The 650,000 bpd-capacity refinery in Nigeria is expected to disrupt traditional diesel and jet suppliers, putting pressure on Europe’s refined petroleum product market.

In its June Oil Market Report, OPEC identified the Dangote Refinery as a crucial player among global suppliers. Potential production increases are expected to challenge Europe’s reliance on established sources.

Source: Legit.ng