By Adedapo Adesanya
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued 20 new licenses as part of efforts to boost the country’s refining capacity.
The regulator granted nine Licenses to Establish (LTEs), seven Licenses to Construct (LTCs), and four Licenses to Operate (LTOs) modular refineries, indicating a strong push toward increased domestic refining capacity, according to NMDPRA Chief Executive, Mr Farouk Ahmed.
He made this disclosure during his keynote address at the ongoing 18th OTL Africa Downstream Energy Week in Lagos.
Mr Ahmed emphasized the country’s target of achieving three million barrels per day in crude oil production and an increase in domestic gas utilization to 10 billion standard cubic feet per day.
He noted that expanding domestic refining would position Nigeria as a net exporter of petroleum products.
“In the past year, the NMDPRA has engaged stakeholders to revise and consolidate regulations, streamlining the regulatory framework to enhance compliance,” Ahmed stated.
He further highlighted efforts to automate processes for improved regulatory clarity.
Mr Ahmed also disclosed that the development of the West African Gas Pipeline (WAGP) project extending to Morocco, will help facilitate the movement of natural gas across West Africa.
He suggested a potential partnership with East and Southern African regional regulators to establish a pan-African Energy Regulators Association, which would streamline regulations across the continent.
Mr Ahmed also emphasised the promotion of Compressed Natural Gas (CNG) as an alternative to Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), with plans to expand CNG infrastructure under the Pi-CNG, the Decade of Gas Program, and the MDGIF.
“Our goal is to accelerate CNG infrastructure expansion at most retail outlets, supporting the growing number of CNG vehicles nationwide,” he said.
On his part, Mr Adetunji Oyebanji, Chairman of the OTL Africa Downstream Energy Week Advisory Board, lauded recent developments in the Nigerian energy sector especially the recent deregulation of Nigeria’s downstream sector and the commissioning of the Dangote Refinery.
He noted that the refinery, with a capacity of 650,000 barrels per day, represents a significant milestone for Nigeria and the entire West African region, setting a foundation for greater competition, transparency, and stability within the sector.
Dipo Olowookere