According to Nigerian media outlet Leadership, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has announced plans to build a new refinery with an initial capacity of 50,000 barrels per day.
PETROAN’s decision comes after the association warned of the imminent closure of about 10,000 service stations due to the high cost of fuel. In light of this situation, PETROAN has requested a 100 billion naira grant from the Federal Government to mitigate the effects of the crisis and ensure the continuity of distributors’ operations.
PETROAN in a competitive context
This announcement comes against a backdrop of increasing competition in the Nigerian refining sector. Giants such as Dangote Petroleum Refinery and Petrochemicals Free Zone Enterprise (DPRP FZE), with their growing output, and BUA Group, whose 200,000 barrel per day refinery is about to come on stream, are transforming the market landscape.
In addition, the Nigerian Government, through the Nigerian National Petroleum Corporation (NNPC) Limited, has launched an ambitious programme to rehabilitate existing refineries, such as the Port Harcourt Refining Company Limited. In parallel, private companies such as AIPCC Energy Limited have entered the sector with projects such as the Edo Refinery and the Koko Refinery of 12,000 bpd and 80,000 bpd respectively.
