News filtered recently that with Dangote 650000 bpd refinery operational, we will not meet our daily fuel consumption in Nigeria, even with our present 3 refineries in Kaduna, PortHarcourt & Warri optimally functioning.
Report says by 2020, we will still need 20m litres per day; my corcern is that how do we bridge this gap without importing, knowing fully well importing will always bring about a regime of subsidy.
As of today, this present is only relieing on Dangote Refinery.
Please what is the way out?

Lebeleb9958:
Other players will come in. The good news is that the proportion Dangote refinery is producing is very significant. The value being bandied about may not be correct,it could be because of subsidy regime.

Dangote refinery may not be OPERATIONAL till like 1st quarter of 2021[b]

Lebeleb9958:
Other players will come in. The good news is that the proportion Dangote refinery is producing is very significant. The value being bandied about may not be correct,it could be because of subsidy regime.

Dangote refinery may not be OPERATIONAL till like 1st quarter of 2021[/b]

Lebeleb9958:
Other players will come in. The good news is that the proportion Dangote refinery is producing is very significant. The value being bandied about may not be correct,it could be because of subsidy regime.

Dangote refinery may not be OPERATIONAL till like 1st quarter of 2021

Most northern oil maketers do smuggled already subsidise fuel to neigbouring country up north.
The best and only solution: remove subsidy totally block the boaders

Redoil:
Most northern oil maketers do smuggled already subsidise fuel to neigbouring country up north.
The best and only solution: remove subsidy totally block the boaders

How many times Are we going to remove subsidy, I remember growing up, we used to buy around 75kobo per litre for our pepper grounding machine and suddenly it was increased to like #5 because it was cheaper than our neighbours.

The Truth is we must have surplus to combat smuggling.

God will help our nation.

they should just sell this country to me .

Omooba77:
News filtered recently that with Dangote 650000 bpd refinery operational, we will not meet our daily fuel consumption in Nigeria, even with our present 3 refineries in Kaduna, PortHarcourt & Warri optimally functioning.
Report says by 2020, we will still need 20m litres per day; my corcern is that how do we bridge this gap without importing, knowing fully well importing will always bring about a regime of subsidy.
As of today, this present is only relieing on Dangote Refinery.
Please what is the way out?

There ways out of the predicament, but they will take time.

1) Reduce demand (this will happen whether we like it or not).

2) Other refineries will come into the market (Niger Republic, Badagry, etc.)

3) The figures we have are slightly inflated because people want subsidy money/smuggling.

But all these will take time, just as it took a few years for Dangote's refinery to be built.

naptu2:


There ways out of the predicament, but they will take time.

1) Reduce demand (this will happen whether we like it or not).

2) Other refineries will come into the market (Niger Republic, Badagry, etc.)

3) The figures we have are slightly inflated because people want subsidy money/smuggling.

But all these will take time, just as it took a few years for Dangote's refinery to be built.

Please which other refineries are being constructed apart from Dangote?

Omooba77:


How many times Are we going to remove subsidy, I remember growing up, we used to buy around 75kobo per litre for our pepper grounding machine and suddenly it was increased to like #5 because it was cheaper than our neighbours.

The Truth is we must have surplus to combat smuggling.

1.As long as government is controlling the price of fuel, there is a subsidy.

2.What has been happening is partial removal of subsidy which is done when the amount of money spent subsidizing fuel becomes too much to maintain that low.price at that moment.

3.Smigguilng happens because subsidy does not allow marketers make a profit. So they smuggle their fuel to neighboring countries where fuel is 290 naira and above , and make a profit.

4.Becaise subsidizing fuel means poor profits, investors won't come in and build more refineries. Even Dangote needed loans, which government helped him get.

5.Government finds it much easier to do partial removal because total removal of subsidy means political revolt

tactius:


1.As long as government is controlling the price of fuel, there is a subsidy.

2.What has been happening is partial removal of subsidy which is done when the amount of money spent subsidizing fuel becomes too much to maintain that low.price at that moment.

3.Smigguilng happens because subsidy does not allow marketers make a profit. So they smuggle their fuel to neighboring countries where fuel is 290 naira and above , and make a profit.

4.Becaise subsidizing fuel means poor profits, investors won't come in and build more refineries. Even Dangote needed loans, which government helped him get.

5.Government finds it much easier to do partial removal because total removal of subsidy means political revolt

But according to these people, there is nothing call subsidy

lalasticlala

Omooba77:


But according to these people, there is nothing call subsidy

lalasticlala

And as long as government sets prices there is a.subsidy.

That's why I did not believe them when they said that.

But to provide some context, in 2016, fuel landing cost was 132 naira, and pump price was 87 naira.

Oil revenues were at.an all time.low due tocrude being at 30 us dollars per barrel meaning no cash to pay for subsides

So.govt raised fuel to 145, ending subsidy.

When landing costs rose above 150 per liter, subsidy was brought back as 'under recovery '

Omooba77:


Please which other refineries are being constructed apart from Dangote?

1 (or should I say 7?)

Seven modular refineries boost Nigeria’s self-sufficiency drive

By Roseline Okere |   03 July 2018   |   5:06 am

Seven licensed refineries with the ability to process 181,000 barrels of crude oil per day (bpd) have progressed towards completion stage in their attempt to contribute to Nigeria’s self-sufficiency in petroleum refining.

For example, the 5,000 bpd Waltersmith Refining & Petrochemical Company Limited’s modular plant, which is capable of producing naphtha, kerosene, diesel, and low pour fuel oil has made significant progress.

The company’s Approval To Construct (ATC) has been granted by the Department of Petroleum Resources (DPR) while Engineering, Procurement and Construction (EPC) contract terms have been agreed with VELEM.

The Environmental Impact Assessment (EIA) review session with DPR has been conducted and the company is closing out funding with Africa Finance Corporation.

Also, the Nigerian Content Development and Monitoring Board (NCDMB) on Friday in Lagos signed a $10 million equity investment agreement with Waltersmith Refining & Petrochemical Company Limited for the construction of 5,000 barrels per day modular refinery to be located at Ibigwe, Imo State.

Other companies, which have made similar progress are Clairgold Oil & Gas Engineering Limited, Niger Delta Petroleum Resources, Dee Jones, Energia Limited, Southfield Petrochemical & Refinery Limited, and Starex Petroleum Refinery Limited.

The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote and the Director of Finance and Personnel Management, Mr. Isaac Yalah signed on behalf of the Board while the Chairman of Waltersmith, Mr. Abdulrasaq Isah and the Executive Vice-Chairman, Mr. Danjuma Sale signed for the company.
Under the Shareholders Agreement and the Share Subscription Agreement, the Board took 30 percent equity in the modular refinery.

The Executive Secretary of NCDMB, Engr. Simbi Wabote said the investment decision was in line with the Board’s vision ‘to be the catalyst for the industrialization of the Nigerian oil and gas industry and its linkage sectors.’

The Board was also keen, he added, to support the Federal Government’s policy on modular refineries and meet the key objectives of the Petroleum Industry’s Seven Big Wins launched by President Mohammed Buhari in October 2016 and the Economic Recovery and Growth Program (EGRP).

According to him, “we have our exit strategy in place to ensure that the refinery reverts back as a fully owned, privately run modular refinery as our role is clearly defined as a catalyst.”

He also commended Waltersmith for developing a bankable proposition, stating that “they sorted out the project feasibility, regulatory approvals, and other pertinent details before reaching out to the Board with the value they are bringing to the table and a clear definition of the support they seek.”

https://guardian.ng/business-services/seven-modular-refineries-boost-nigerias-self-sufficiency-drive/amp/?

Omooba77:


Please which other refineries are being constructed apart from Dangote?

2 (or 8 ).

The agreement for the construction of this refinery and a pipeline that will transport crude oil from Niger to Nigeria was signed a year ago, but construction has been delayed because the Chinese oil company CNPC, which has majority stake in the oil well in Niger, already has an agreement to supply that crude through Benin Republic.

However, it is much cheaper and easier to supply the crude to Katsina State in Nigeria, than it is to supply Benin, so CNPC is trying to get out of the agreement it made with Benin without being sued.

Nigeria, Niger urged to fast track construction of Katsina refinery


Aliyu Othman, Lawan Hamidu in Katsina

April 11, 2019

Nigeria and Niger Republic have been urged to fast track the construction of the Katsina Refinery to improve economic relations between the two nations.

In an interview with Voice of Nigeria, the Governor of Katsina State, Aminu Masari said that the refinery, when completed would accelerate economic activities of the border state, and provide job opportunities to the people.

Governor Masari said the state government had allocated a suitable location in Mani and Mashi local governments, where the refinery would be situated and offered to provide security to protect the installations.

The agreement for the construction of the refinery between Nigeria and Niger, signed a year ago, includes China National Petroleum Corporation (CNPC), which holds eighty percent of the proven oil reserve and the operating permit handling the project.

Governor Aminu Masari told Voice of Nigeria in Katsina that the proposed refinery would utilize the projected 5,000 barrels per day, crude oil from Niger Republic to provide the needed energy for the state and its neighbors.

The agreement signed between Niger and Nigeria provides for the export of crude oil from the Agadem Rift Basin of South East Niger to Nigeria, called the Niger-Nigeria export project.

The MoU followed the upstream approval granted by the Niger government to the Chinese oil company for the Agadem PSC exclusive exploration area 3, the production area expected to feed the Katsina refinery.

The Memorandum of Understanding also provides for the construction of an export pipeline from the Agadem Rift Basin (ARM) to the proposed new refinery in Katsina State.

The refinery project also has the buy-in of Savannah Petroleum PLC, the British independent oil and gas company focused on activities in Niger and Nigeria.

The Savannah Petroleum Chief Executive Officer, Mr. Andrew Knott said: “We expect the Niger-Nigeria export project to provide one of the potential routes to market for Savannah’s existing and future discoveries in Niger.’’

It’s expected that delays basically caused by the stand of the China National Petroleum Corporation, CNPC, on the need to agree to the Nigerien project rather than that proposed on the Benin republic route, would be finalized soon.

The Nigerien Minister of Petroleum, Mr. Foumakoye Gado, said last year, that ” to run a pipeline from Agadem to Benin Republic seaport is like 2080km which will be very costly compared to Agadem-Katsina which is just 120 to 150 km.’’

Also speaking, Head of the joint technical team for the Katsina refinery project, Mr. Rabiu Suleiman said: “We are discussing on how the Chinese can withdraw from the understanding they have with Benin Republic without litigation and come back to Nigeria and dedicate crude oil for Nigeria.’’

https://www.von.gov.ng/nigeria-niger-urged-to-fast-track-construction-of-katsina-refinery/

Simple get rid of subsidies and wait for new private players to come in. I know fuel demand is mostly inelastic since but removing will reduce some consumer demand. Let market determine price of oil.

Katsina refinery
Petrolex refinery
Modular refiners all over
Maybe NNPC miracle

naptu2:


2 (or 8 ).

The agreement for the construction of this refinery and a pipeline that will transport crude oil from Niger to Nigeria was signed a year ago, but construction has been delayed because the Chinese oil company CNPC, which has majority stake in the oil well in Niger, already has an agreement to supply that crude through Benin Republic.

However, it is much cheaper and easier to supply the crude to Katsina State in Nigeria, than it is to supply Benin, so CNPC is trying to get out of the agreement it made with Benin without being sued.




https://www.von.gov.ng/nigeria-niger-urged-to-fast-track-construction-of-katsina-refinery/

Only Dangote is under construction as far as I know, please send me pix of those one you mentioned.
If it is true, then glory to God

Omooba77:


Only Dangote is under construction as far as I know, please send me pix of those one you mentioned.
If it is true, then glory to God

That one not being constructed yet. The Chinese have to work out issues with other deals they have going on. Its just being planned.

Ps: Does anyone find it funny they're willing spend extra money to export crude through Benin than risk going through Nigeria. They also prefer the Cotonou port in general.

Omooba77:


Only Dangote is under construction as far as I know, please send me pix of those one you mentioned.
If it is true, then glory to God

I didn't say that they are under construction. This is what I said.

naptu2:


There ways out of the predicament, but they will take time.

2) Other refineries will come into the market (Niger Republic, Badagry, etc.)

The groundbreaking ceremony of the Waltersmith Refinery was only done late last year and as I said (about the Katsina Refinery) the agreement between CNPC and Benin Republic has delayed construction.

Below: the groundbreaking ceremony of the Waltersmith Refinery.

https://ndlink.org/kachikwu-performs-groundbreaking-waltersmith-modular-refinery/

There won't be any short fall..alot of refinery are in place in this country example is the Anambra state govt "orient " refinery..many state govts' have already embarked nd completed refinery projects..they are only waiting for the economic environment to enable them producce....so there will b no short - fall

there is not shortfall anywhere , just 4 years ago Nigerias daily fuel demand was 26 million litres a day and unjust 2 years of Buhari it rose to about 51 million litres a day which is very suspect and criminal

SarkinYarki:
there is not shortfall anywhere , just 4 years ago Nigerias daily fuel demand was 26 million litres a day and unjust 2 years of Buhari it rose to about 51 million litres a day which is very suspect and criminal

I have been wondering about that figure too, I hardly fill my tank since Fuel gone up to 145, but 4 years ago, I drive filled up tanks

bigpicture001:

There won't be any short fall..alot of refinery are in place in this country example is the Anambra state govt "orient " refinery..many state govts' have already embarked nd completed refinery projects..they are only waiting for the economic environment to enable them producce....so there will b no short - fall

Orient refinery has been in the Pipeline since 2000. Go and check your record sir. Only Dangote is under construction as of today 26th April, 2019!

Omooba77:
News filtered recently that with Dangote 650000 bpd refinery operational, we will not meet our daily fuel consumption in Nigeria, even with our present 3 refineries in Kaduna, PortHarcourt & Warri optimally functioning.
Report says by 2020, we will still need 20m liters per day; my corcern is that how do we bridge this gap without importing, knowing fully well importing will always bring about a regime of subsidy.
As of today, this present is only relieing on Dangote Refinery.
Please what is the way out?

Don't be fooled by NNPC propaganda lies. The second largest refinery in the world will soon be in Lagos next year and they have the capacity to store 60m liters a day. Dangote refinery will give Nigeria 90% of our consumption while NNPC can continue to import as they're currently doing to close the 10% gap. NNPC is a continuous criminal enterprise

tribalistseun:


Don't be fooled by NNPC propaganda lies. The second largest refinery in the world will soon be in Lagos next year and they have the capacity to store 60m liters a day. Dangote refinery will give Nigeria 90% of our consumption while NNPC can continue to import as they're currently doing to close the 10% gap. NNPC is a continuous criminal enterprise

If Dangote refinery will give 90%, the 3 others should supply our 10% needs, but we are far from the Truth . Dangote alone can meet our needs

6 years ago.

At this time Dangote was planning to build the refinery in Ondo, while the refinery in Lekki was going to be built by a Chinese consortium and the Lagos State Government.

Follow the arguments on pages 2 and 3.

https://www.nairaland.com/1437299/harvard-business-article-praising-dangotes

Omooba77:
News filtered recently that with Dangote 650000 bpd refinery operational, we will not meet our daily fuel consumption in Nigeria, even with our present 3 refineries in Kaduna, PortHarcourt & Warri optimally functioning.
Report says by 2020, we will still need 20m litres per day; my corcern is that how do we bridge this gap without importing, knowing fully well importing will always bring about a regime of subsidy.
As of today, this present is only relieing on Dangote Refinery.
Please what is the way out?

What's the problem? I see no problem but you.

End subsidies and deregulate the price of oil. Go and rest.

Extra: provide tax holidays for those who set up refineries. 99% of the problem is the petrol subsidy Simply end it

grandstar:


What's the problem? I see no problem but you.

End subsidies and deregulate the price of oil. Go and rest.

Extra: provide tax holidays for those who set up refineries. 99% of the problem is the petrol subsidy Simply end it

Why me sir, Iam not the Petroleum Minister!

Don’t believe NNPC’s lies, they don’t want to end subsidy, They’ll facilitate smuggling of petrol to neighboring countries to continue the subsidy fraud.

Omooba77:
News filtered recently that with Dangote 650000 bpd refinery operational, we will not meet our daily fuel consumption in Nigeria, even with our present 3 refineries in Kaduna, PortHarcourt & Warri optimally functioning.
Report says by 2020, we will still need 20m litres per day; my corcern is that how do we bridge this gap without importing, knowing fully well importing will always bring about a regime of subsidy.
As of today, this present is only relieing on Dangote Refinery.
Please what is the way out?

Dangote has capacity to process 650,000 bpd. Nigeria needs 400,000 bdp (barrels per day) of crude oil to meet it's local energy consumption ( petrol, diesel, jet fuel, kerosene and other bi-products). Dangote will export the balance of 250,000bpd. A barrel of crude oil is equivalent to 159litres. When the crude oil is refined, it gives 47% petrol. That is about 44.5million litres of petrol, enough to meet local demand.

lagbaja:


Dangote has capacity to process 650,000 bpd. Nigeria needs 400,000 bdp (barrels per day) of crude oil to meet it's local energy consumption ( petrol, diesel, jet fuel, kerosene and other bi-products). Dangote will export the balance of 250,000bpd. A barrel of crude oil is equivalent to 159litres. When the crude oil is refined, it gives 47% petrol. That is about 44.5million litres of petrol, enough to meet local demand.

Despite the current 445,000 barrels per day (bpd) capacity of the country’s refineries and Dangote’s 650,000 bpd refinery expected by 2020, Nigeria will still have a shortfall of 427,000 bpd, equivalent of 20 million litres of Premium Motor Spirit (PMS), per day. Dr. Maikanti Baru, Group Managing Director of Nigeria National Petroleum Corporation (NNPC), who disclosed this yesterday in Abuja, said the country would need a refining capacity of 1.52 million bpd in order to meet its PMS requirement by 2025.

Read more: https://www.dailytrust.com.ng/daily-petrol-shortfall-to-hit-20m-litres-despite-dangote-refinery-nnpc.html

Omooba77:
News filtered recently that with Dangote 650000 bpd refinery operational, we will not meet our daily fuel consumption in Nigeria, even with our present 3 refineries in Kaduna, PortHarcourt & Warri optimally functioning.
Report says by 2020, we will still need 20m litres per day; my corcern is that how do we bridge this gap without importing, knowing fully well importing will always bring about a regime of subsidy.
As of today, this present is only relieing on Dangote Refinery.
Please what is the way out?

The question should be where would Dangote get 650,000 bpd to run his refinery.

He is wasting his time because the government cannot sell 33% of its crude to domestic consumers.

Oil provides about 90% of our foreign exchange, so do you think we are going to lose 33% of our FX?

Oil trade in the international market is the only thing that makes us strategic player in global politics, do you think we are going to lose our only leverage?

Believe it or not, our state refineries were intentionally sabotaged so that we would continue to meet our international quota. Do you the amount of FX refining 450,000 bpd locally would cost this country and the international strategic advantage we would lose from that?

Are you aware despite the large deposit of oil in the country and the nearness of a crude oil supply pipeline from the South in Kaduna, the refinery Buhari is building in Katsina would source majority of its oil from Niger?

If you think we are going to give 650,000 bpd to Dangote everyday just like that, you are mistaken.

We can only sell to him if we increase our daily production. We can never cut down our international quota for anyone. NEVER!!!

ChristianNorth:

The question should be where would Dangote get 650,000 bpd to run his refinery.

He is wasting his time because the government cannot sell 33% of its crude to domestic consumers.

Oil provides about 90% of our foreign exchange, so do you think we are going to lose 33% of our FX?

Oil trade in the international market is the only thing that makes us strategic player in global politics, do you think we are going to lose our only leverage?

Believe it or not, our state refineries were intentionally sabotaged so that we would continue to meet our international quota. Do you the amount of FX refining 450,000 bpd locally would cost this country and the international strategic advantage we would lose from that?

Are you aware despite the large deposit of oil in the country and the nearness of a crude oil supply pipeline from the South in Kaduna, the refinery Buhari is building in Katsina would source majority of its oil from Niger?

If you think we are going to give 650,000 bpd to Dangote everyday just like that, you are mistaken.

We can only sell to him if we increase our daily production. We can never cut down our international quota for anyone. NEVER!!!

You're conspiracy theory is bad on multiple levels.

• cutting oil imports saves forex. Most of it is spent on importing refined oil. The net benefit is we energy independent.

• Any short fall from Nigeria can be covered by other countries. Dangote refinery can refine heavy or light crude.

• Nigeria wouldnt lose influence because we refined our oil. We would simply ramp up production to cover short falls. Why do you think every other oil producing country attemps to supply domestic needs.

• Buhari is getting oil from Niger Republic because militants frustrated him in 2016. Also the Kaduna refinery not opperating efficiently. Niger Republic and China are building it because the need an export channel.

• We dont need to cut the quotas so what's the point of rant?