Modular refineries can meet over 10% diesel needs – CORAN
The Crude Oil Refineries Association of Nigeria claims that modular refineries could satisfy over 10% of Nigeria's diesel needs, but face challenges due to inadequate crude supply.
The Crude Oil Refineries Association of Nigeria (CORAN) has stated that modular refineries in the country have the potential to meet more than 10% of Nigeria's diesel requirements, contingent on overcoming significant challenges related to feedstock supply. In a recent interview, CORAN's Publicity Secretary, Eche Idoko, expressed skepticism towards a report from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that suggested these refineries only accounted for approximately 2% of the country's diesel supply over a three-month period.
Idoko highlighted the critical issue of inadequate crude supply as a major hindrance to modular refineries reaching their production capacity. While the NMDPRA's figures may not fully reflect the industry's potential, he argues that even a small percentage of production at present is vital for the country's energy needs. The association believes that with enough crude supply, modular refineries could significantly increase their contribution, potentially supplying up to 15% of current diesel demands, thereby positively impacting the Nigerian energy sector and reducing the country's reliance on imported diesel.
The situation presents both challenges and opportunities for Nigeria's energy landscape. Increasing the output from modular refineries may assist in stabilizing local fuel supply and prices, which have been volatile due to reliance on imports and external market conditions. CORAN's assertion advocates for policy and infrastructural support to optimize the capabilities of these refineries, which could play a pivotal role in fortifying Nigeria's energy independence through enhanced domestic production.