Losses mount at idle Nigerian refineries
There is little hope that state-owned refiners will resume production, partly due to Covid-19, while the new Dangote refinery is insufficient to meet demand
Nigeria’s four state-owned refineries have been idle for more than a year as they wait for essential maintenance, with little likelihood of resuming production as cashflow constraints and coronavirus-related movement restrictions hamper repairs. The four refineries were completed between 1965 and 1989 and have a combined capacity of 445,000bl/d, which should be sufficient to meet around 70pc of daily domestic demand. The quartet registered combined operational expenses of NGN142.1bn ($367mn) in the 12 months to 30 June despite being out of service, according to the country’s NOC, Nigerian National Petroleum Corporation (NNPC). Consequently, Africa’s top oil producer is entirely reliant on fu
Also in this section
21 February 2025
While large-scale planned LNG schemes in sub-Saharan Africa have faced fresh problems, FLNG projects are stepping into that space
20 February 2025
Greater social mobility means increased global demand for refined fuels and petrochemical products, with Asia leading the way in the expansion of refining capacity
19 February 2025
The EU would do well to ease its gas storage requirements to avoid heavy purchase costs this summer, with the targets having created market distortion while giving sellers a significant advantage over buyers
18 February 2025
Deliveries to China decline by around 1m b/d from move to curb crude exports to Shandong port, putting Iran under further economic pressure
