With 2.2 million barrels daily, Nigeria to export gasoline mid 2023

Nigeria Adds 4 Million Barrels To Its Oil Export Storage Capacity

Nigeria plans to export gasoline 

According to information released by the Nigerian National Petroleum Company Limited (NNPC), the nation will begin exporting Premium Motor Spirit in the middle of 2023 as local refining capacity is expected to increase to 1.1 million barrels per day.

Mele Kyari, the group chief executive officer of the commercialized company, promised the world virtually at the 13th Global UAE Energy Forum that the nation will also raise crude oil output to 2.2 million barrels per day, even if this is not the first time such a pledge has been made.

Nigeria’s economy has struggled to grow as a result of changes in the country’s oil and gas industry.

Since the nation’s refining capacity is almost entirely underutilized, billions of dollars are spent importing PMS, which is then sold at a discount. Additionally, the capacity for producing crude oil was at an all-time low last year, aggravating the inflation and foreign exchange crises. export gasoline

In the past seven years, Nigeria’s crude oil production has remained low due to increased theft and vandalism, which has resulted in the closure of oil wells and a loss of investment to other African nations.

The oil industry has apparently collapsed due to the status of the refineries, the monopoly in the sale of premium motor spirit, the import of unclean fuel, subsidy payments, and allegations of corruption in the sector.

However, as he claimed that the nation will produce PMS to national capacity and export deficit, Kyari recognized what could be a break even point. export gasoline

“Security challenges around oil operations in the country became very manifest early on in 2022 and we took steps to bring back production, which have paid off. In July, net crude oil output, excluding condensates, had dropped to one million barrels, the lowest in the history of our industry. By the end of December, production was 1.5mbd and the trajectory for the end of this year, including condensates, is 1.8mbd to 2.2mbd,” Kyari said.

He claims that when the nation regains access to its refinery capacity by the middle of the year, the total national capacity would be about 1.1 million barrels, leaving a net difference that must be exported because it exceeds local demand.

In a video posted to the NNPC Twitter account, Kyari commented on the global crude oil market and said that the price volatility last year was unusual. export gasoline

He claimed that due of the general lack of investment and financial restrictions, the line of sight for new production starting up was likewise limited, making a big supply rebound over the next two years improbable.

“That means we will have to live with this range of prices for a while to come. And demand will not collapse – the world is coming back from COVID-19 and there are many countries, particularly, in sub-Saharan Africa, where economies are growing very fast, against all odds. So, $75 to $80 oil is a very realistic price for the time being,” he noted.

Due to a lack of local refineries, Nigeria faces difficulties with both high and low oil prices. The benchmark price of $75 per barrel of crude oil served as the basis for the 2023 budget.

Kyari said while oil producers and consumers in the industry see $60 oil as a good price, but learn to live with $75 to $80 should there be a supply chain challenge, such development “is of course a challenge for many African countries.”

While the Federal Government claimed that funds were being borrowed to pay for the subsidy, Kyari said that NNPC was not in the red because it had signed a service agreement and had the necessary cash flow to serve the nation with petroleum products.

“Our relationship with the government today in terms of fuel supply is commercial. There is a service level agreement between us to supply fuel and sell at the price that the policy decision of the government stipulates. It is not a problem for us as a corporate entity,” he noted.

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