There are indications that Dangote Refinery and ten other refineries across Africa may, from next year, provide an immediate market for African crude oil.
This is coming as the push for the banning of fossil fuels continues in developed countries with the implication of reduced buyers for Nigeria and other African crude.
About 11 refineries coming on stream from next year will reportedly take over 1.7 million barrels per day of crude oil from the global market.
The price of crude oil edged higher on Tuesday day as China continued to open up after COVID-19 while Russia hinted on a production cut amidst winter storm across North America.
The 1.7 million bpd expected to be consumed by refineries on the continent could be a game changer in terms of foreign exchange crisis, stability of the continent’s economy, energy security, as well as value addition. But the ability of countries like Nigeria to pump crude oil to meet demand remains a critical concern.
Some of the refineries expected to come on stream and their capabilities are Dangote Refinery (650,000 bpd) while the NNPC combined refinery capacity is 445,000 bpd, MIDOR expansion in Egypt (160, 000 bpd), Assiut Hydrocracker (90,000 bpd) and Hassi Messaoud Refinery in Algeria (100,000 bpd).
Others are South Africa’ Astron Restart (100, 000 bpd), Cabinda Refinery of Angola, (60,000 bpd) and Ghana’s Sentuo refinery (120, 000).
This comes as the Nigerian Oil and Gas Suppliers Association (NOGASA) petroleum refineries in the country, especially the Port Harcourt Refinery Company (PHRC), is scheduled to start refining crude oil this month.
NOGASA President, Benneth Korie and the Minister of State for Petroleum Resources, Timipre Sylva, have confirmed the timeline.
Speaking with reporters in Abuja, Korie said the resumption of domestic refining will ameliorate the crisis of Premium Motor Spirit (PMS) petrol scarcity and rising price.