Business

Dangote’s 650,000bpd, Modular Refineries to Drive Nigeria’s Huge Demand for Petroleum Products – Kyari

Published

2 years ago

November 4, 2021

Eric

The 650,000bpd Dangote Petroleum Refinery, Nigerian National Petroleum Corporation (NNPC) as well as other modular refineries are expected to be the major drivers of Nigeria’s demand for petroleum products, which is projected to grow massively in the nearest future.

Speaking at the 15th Oil Trading and Logistics (OTL) Africa Downstream Week in Lagos, the Group Managing Director of NNPC, Mallam Mele Kyari, said NNPC Refineries’ 445,000 barrels-per-day (BPD), Dangote Refinery’s 650,000 BPD and the 250,000 BSD expected to come from the Condensate Refineries through the private sector partnership respectively would supply the requirement of Premium Motor Spirit (PMS) needs in Nigeria.

Kyari’s position only corroborated that of President of the Dangote Group, Aliko Dangote who said he was dissatisfied with the fact that Nigeria is a leading oil producer but imports all her petroleum needs.

Dangote who was speaking on his mega refinery project in Lagos said it was the unsavoury situation the nation found itself that made him to take up the challenge to embark on the construction of the gigantic refinery project, which he said is one of the biggest in the world.
According to him some 29,000 Nigerians would be employed in the refinery when completed and that would also help in the employment generation drive of the federal government.

Kyari, who was represented by the Group Executive Director, Downstream, NNPC, Adeyemi Adetunji, explained that the diversification of NNPC’s portfolio through acquisition of 20 per cent equity valued at $2.6 billion in the 650,000 bpd Dangote Refinery located in the Lekki Free Trade Zone would ensure national energy security and guarantee market for Nigeria’s 300,000 bpd.

He stated, “NNPC is adding 215,000 BPD of refining capacity through private sector driven co-location at the existing facilities in Warri Refining and Petrochemical Company (WRPC) and Port Harcourt Refining Company (PHRC) respectively. Modular refineries are also adding capacities such as the 5,000 BPD Waltersmith refinery, which will be upgraded to 50,000 BPD.

“Additional 250,000 BPD is expected to come from the Condensate Refineries through the private sector partnership. The co-location and Condensate refineries will close the PMS supply-demand gap and create positive returns to the investors,” the NNPC helmsman added.

He said the Corporation has progressed with the Refineries Rehabilitation Programme to boost its participation in the oil & gas value chain by awarding the $1.5 billion Port Harcourt rehabilitation contract with the commitment to deliver on Warri and Kaduna Refineries.
On gas commercialisation effort, Kyari said the Federal Government has declared 2021-2030 as the decade of gas development in Nigeria.

Kyari said the demand for natural gas could grow about four times over the next decade, increasing from 4.8 billion cubic feet per day (bcf/d) in 2020 to between 10 – 23 bcf/d in 2030.

He said currently, supply to the domestic market was about 8bcf/d to power, 0.77 bcf/d to industries, and about 54 bcf/d was flared, while 3.2 bcf/d was for export gas through the LNG and the West Africa Gas Pipeline (WAGP).

According to him, achieving this growth in demand would be occasioned by increasing the dispatchable capacity of existing power, in line with the Presidential Power Initiative, which is less than 1.4 bcf/d).

He added that the growth would be achieved through assuring delivery of major fertiliser projects (Dangote, Brass) 5 bcf/d), and enabling industrial demand for natural gas in the northern axis of the country (1.2 bcf/d).

On the global oil market outlook, Kyari said, “Some $10.4 trillion global stimulus in response to the COVID-19 pandemic has led to the rebound in consumers’ spending while incentives for long-term investments in hydro-carbon have waned.”

He stated that hydrocarbon would continue to be relevant in the global energy mix for the next two decades, quoting the recent data by the Organisation of Petroleum Exporting Countries (OPEC).

On the issue of downstream in transition, the NNPC boss noted that the Nigerian oil and gas industry has been in transition prior to the passage of the Petroleum Industry Bill (PIB), in response to the global energy transition and decarbonisation initiatives.

Kyari maintained that it would be difficult to discuss the transition in the downstream sub-sector in isolation from the overall evolution that was happening in the industry. He said NNPC had diversified its portfolio over the years, transiting to an energy company with new investments in gas, power, and renewables, pointing out that key pipeline projects are ongoing to assure delivery of gas to the demand nodes.

He stated, “The OB3 project, which brings gas from East to West, is nearing completion. The 614km Ajaokuta, Kaduna, Kano (AKK) project, which was launched by Mr. President in June 2020, is progressing very well. These could add up to $40 billion to annual GDP and create additional six million jobs.

“The corporation has progressed with the Refineries Rehabilitation Programme to further boost its participation in the Oil and Gas value chain by awarding the $1.5 billion Port Harcourt rehabilitation contract with the commitment to deliver on Warri and Kaduna Refineries.

“The rehabilitation of critical downstream infrastructure comprising of major pipelines, depots and terminals through the Build, Operate and Transfer (BOT) financing model is on course,” he added.
Kyari explained that the transition in Nigeria’s oil and gas sector was being driven by the global decarbonisation efforts to switch to renewables in response to environmental concerns.
As investments in hydrocarbon continued to wane due to energy transition and geopolitics, Kyari said the world economy faced shortages, high energy prices, rising inflation and sluggish growth.

Business

Rotary Should Continue to Inspire Women for Economic Growth- Alaba Lawson

Published

1 week ago

May 22, 2023

Editor

Mrs Geetika Tandon, Rtn Gabriel Otsu, Chairman, organising Committee, Iyalode Alaba Lawson, Keynote Speaker, District Governor, Rotary District 9110, Rtn Omotunde Lawson & Rtn Francis Lawson

A call has gone to Rotary International District 9110 and indeed organisations around the country to consistently inspire and promote women for economic and national growth

The appeal was made by former President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Chief Alaba Lawson while presenting the keynote address at the first Rotary District 9110 Women in Rotary Conference held at the Nigeria Law School Auditorium, Victoria Island, Lagos.

Rtn Francis Lawson, District Governor, Rtn Omotunde Lawson, Mrs Angela Emewa, Chairman, Punch and award recipient & Rtn Gabriel Otsu, Chairman, Organising Committee

Speaking on the topic “ The Transformational Woman: Diversity, Equity & Inclusion For Socio-Economic Change”, Chief Lawson stated that Rotary as an organization has made giant strides in the area of women empowerment and advised that the body should do more as it will ultimately lead to the nation’s growth.

Rtn Gabriel Otsu, Rtn Francis Lawson, District Governor, Rtn Omotunde Lawson, Chief (Mrs) Alaba Lawson & guest speaker

She noted that women are the key to Nigeria’s economic and political advancement, and the more women involved at the top echelon and decision-making process, the better.

According to her“When more women work, economies grow. Women’s economic empowerment boosts productivity, increases economic diversification and income equality in addition to other positive development outcomes”.

Describing women as the future, she stated that studies have shown that companies with more women on their boards outperform those without them by a significant margin, and organisations with greater gender diversity globally grew to 32% in 2022.

According to her, women often excel at soft skills required for business leadership and they represent a significant economic force and provide valuable consumer insight that any nation needs to thrive.

She further highlighted the fact that Nigeria needs traits such as ability to connect, collaborate, empathize, communicate and be prudent which are inherent in women to make progress in key sectors including economy, politics and more.

She, however, lamented that despite the fact that women are in the majority in terms of population, the opportunities for them to show their skills and contribute meaningfully have been hampered by systemic bottlenecks.

She therefore advised that to fuel its fire of progress and revolutionize its economic, political and social structure, women must be given adequate representation in government and key sectors of the economy.

Also speaking, Tax expert and management consultant, Mr Gbenga Badejo who spoke on “10 Top Financial Challenges for Micro, Small and Medium Enterprises” noted that if women can overcome these challenges, they would be able build formidable businesses and play in the big league.

He gave the challenges as: limited or inconsistent cashflow, not using budgetary control mechanism, no preparation for unforeseen expenses, not raising enough capital, too much debt, neglecting necessary financial reporting and book keeping, , poor regulatory compliance, mixing business and personal finances, poor marketing tactics and poor managing of receivables and payables.

Earlier in her welcome address, Rotarian Omotunde Lawson, District Governor, Rotary International District 9110 noted that the conference, the first in the 41 -year history of the District, which covers Rotary Clubs in Lagos and Ogun States, was aimed at equipping women with the right support for personal and financial growth.

The conference was rounded off with a dinner and awards ceremony at the same venue where eminent women were honoured for their contributions to national development.

Business

Buhari Headlines Commissioning of Dangote’s 650,000bpd Refinery on May 22

Published

3 weeks ago

May 7, 2023

Eric

President Muhammadu Buhari is expected to be in Lagos on May 22 to commission the Dangote Refinery.

Bashir Ahmad, special assistant to the president on digital communications, announced the development in a tweet on Sunday.

“Efforts by the Federal Government to make Nigeria self-sufficient in local refining of crude oil to save the scarce foreign exchange used in the importation of petroleum products have received a boost as the 650,000 barrels per day Dangote Refinery, the world’s largest single-train refinery, is set for inauguration on May 22nd, 2023, by President Muhammadu Buhari,” the tweet reads.

The Dangote Refinery is a 650,000 barrels per day (BPD) integrated refinery project located in the Lekki free trade zone area of Lagos state.

The project, which cost an estimated $19 billion to build, is Africa’s biggest oil refinery and the world’s biggest single-train facility.

The integrated refinery and petrochemical project is expected to generate 9,500 direct and 25,000 indirect jobs.

Its output is expected to be more than enough to meet Nigeria’s fuel demands and turn Africa’s largest crude producer into an exporter of refined crude.

Last year, Aliko Dangote, chairman of Dangote Group and Africa’s richest person, said his oil refinery would be commissioned before the end of Buhari’s tenure.

In June 2021, Mele Kyari, group managing director, NNPC, confirmed that the federal government would acquire a 20 percent equity stake in the Dangote Refinery.

Two months later, the federal executive council (FEC) approved the sum of $2.76 billion for the acquisition of a 20 percent minority equity stake in the refinery.

TheCable

Business

Glo Rewards Dealers, Partners with Houses, Cars, Other Gifts

Published

1 month ago

April 19, 2023

Eric

It was a moment of Joy and excitement for Business Partners of Nigeria’s total telecommunications solutions provider, Globacom, on Monday night as they got to reap the reward of their partnership.

The company celebrated the dealers across the country, rewarding them with mouth-watering gifts including houses, brand-new cars, and household appliances. They received the prizes at the 2022 Dealers’ Award events held simultaneously in Lagos, Abuja, Port Harcourt, Jos, and Kaduna for dealers in the territories.

A total of 70 dealers across the five cities received different prizes in various categories. 14 Category 1 dealers received keys to houses, while 37 Categories 2, 3, and 4 dealers were presented with a variety of brand-new cars. The final set of dealers in Category 5, who were 19 in number, received assorted valuable household items.

The excited dealers praised Globacom and its Chairman, Dr. Mike Adenuga, Jr., for being true to their words. Speaking at the Lagos event, a frontline dealer, Alhaji Mobolaji Abdulrasaq, Managing Director of Yarab Integrated Limited, commended Globacom for what he called “appreciative gesture”, which according to him will definitely spur the dealers to do much more.

In Abuja, the Managing Director of Zeph Associates, Mr. Tochukwu Nwosu, whose company won two brand new bungalow houses alongside other Category 1 dealers said, “Globacom has delighted its trade partners tonight, and on behalf of my fellow dealers, we say thank you”.

Also in Port Harcourt, Mr. Nonso Osinike, CEO of Lustre Communication, whose company won a bungalow, lauded Globacom for keeping up with the promise of rewarding its Business Partners. “They (Globacom) have been wonderful and every one of us will always be proud to do business with them. It is a mutual benefit between us. The support they have given us over the years has culminated in our standing with them too, he noted.

Chief Jideofor Agudosi of Emy-V Global and Lady Blessing Agbara of Allasimal Exault who both won cars in Jos said the awards signified the premium Globacom placed on its dealers, just as Mr. Olalekan Abdulrasaq of Luktec Resources Concept Limited, a winner in Kaduna, said he was proud to be a Glo dealer as it is a company that seeks the profitability of its partners.