FG Addresses Concerns About Crude Supply Challenges For Refineries

To address concerns about the insufficient supply of crude oil for domestic refiners, the Federal Government of Nigeria called a critical meeting with operators of refineries on Wednesday.
The government underlined the need to fulfil domestic crude requirements in order to increase refining capacity, stressing the preparedness of the 650,000 barrels per day Dangote refinery, which depends on a steady supply of crude.
During the meeting with domestic refinery operators in Abuja, Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), an institution under the Federal Government, revealed these details.
“Good enough, we have the largest refinery in Africa, that is the Dangote refinery. It is ready to commence operations.
“We’ve received a request from the refinery to guarantee feedstock to the 650,000 barrels refinery, and we believe that as a nation, it will be a shame if we cannot meet the feedstock of the refinery.”
The main aim of the conference was to jointly tackle the feedstock needs of domestic refineries and strive towards making Nigeria a net exporter of refined petroleum products. The nation is currently a net exporter of crude oil that has not been refined.
Komolafe further disclosed that the NUPRC had reached out to crude oil producers, asking for information on the amounts of committed and uncommitted crude oil in respective regions.
Some producers, nevertheless, have not yet complied with this requirement. The information gathered will assist the commission in determining whether the non-committed volumes can fulfil the requirements for domestic feedstock as of right now.
The pricing of refined petroleum products would benefit from domestic crude oil refining, Komolafe added, possibly lessening the financial burden of gasoline subsidies.
Nigeria has been a net importer of refined products, despite having substantial reserves of crude oil. In order to improve this situation and support the national economy, it is imperative that domestic refining obligations be met.
The importance of the gathering industry stakeholders in tackling this issue was highlighted by the joint commitment made at the end of the meeting to investigate ways to turn Nigeria into a net exporter of refined goods.

Source: allnewsng.com

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