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New Refineries to Overrun Inefficient Plants by 2024

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oil refinery
  • New Refineries to Overrun Inefficient Plants by 2024

An increase in the number of new refining capacity, expected to extend till the end of 2024, signifies major competition ahead for the oil industry, with possible shutdowns, the International Energy Agency (IEA), said in its Oil 2019 Report.

The IEA noted specifically that such a capacity expansion will require shutdowns to balance, estimating that 4.3 million barrels daily (b/d) should theoretically be closed by 2024, so that the new additions do not exceed the products demand growth.

As it were, shutdowns of Nigeria’s local refineries appear imminent as operating deficit rises to N132.5billion.

With Dangote Refinery expected to commence operations within the timeline with a capacity of 650,000 b/d of crude oil, Nigeria’s existing refineries may cease to operate having continued to record huge deficit over the years.

Indeed, the Refinery is touted to have the capacity to meet 100% of the domestic requirement of all liquid petroleum products (Gasoline, Diesel, Kerosene and Aviation fuel), leaving the surplus for export.

Besides, new data from the Nigerian National Petroleum Corporation (NNPC) showed on Tuesday, that the operating deficit recorded by the nation’s refineries rose by 39 per cent to N132.5billion in 2018, compared to the previous year.

The refineries posted a loss of N95.09billion in 2017, according to the NNPC data.

The refineries, which are located in Port Harcourt, Kaduna, and Warri, have a combined installed capacity of 445,000 b/d, but have continued to operate far below the installed capacity for many years.

Port Harcourt refinery, which did not process any crude oil in seven months, recorded the biggest loss of N59.96billion in 2018.

Kaduna refinery, which was idle for 11 months, lost N31billion, while Warri refinery recorded a deficit of N41.71billion, according to the NNPC.

A total of N13.58billion was lost in January; N8.05billion in February; N11.88billion in March; N20.08billion in May; N14.51billion in June; N10.45billion in July; N10.79billion in August; N6.97billion in September, N9.32billion in October, N9.58billion in November and N17.31billion in December.

The refineries made a profit of N6.32billion in April, for the first time in 10 months.

It was observed that Warri refinery was idle in January, September and October 2018.

The NNPC, in its monthly report released on Tuesday, said its group operating revenue for December stood at N731.88billion, N439.59billion higher than the previous month performance, while expenditure surged by N429.52billion.

According to the IEA report, as much as 9.1 million b/d of net additions will come on line by the end of the forecast period in 2024, which is twice the size of the growth in demand for refined products.

“Almost two thirds of the new capacity, as well as two thirds of refined products demand growth, will be in Asia,” the IEA said.

New refining capacity in the Middle East and Asia accounts for 78% of global additions, the report added.

The new additions include the Al-Zour refinery in Kuwait, and capacity addition at Kuwait’s Mina Abdulla, the Jazan refinery in Saudi Arabia, expansions at Iran’s refineries, and restoration of war-damaged facilities in Iraq as well as some greenfield projects.

The agency revised its forecast of refining capacity additions “due to a more aggressive Chinese expansion,” with net global additions now 1.9 million b/d higher than in its Oil 2018 report.

“It is the arrival of the three large independent players that signifies a major change in China’s refining landscape,” the report said, citing the large petrochemical-oriented refineries built by Hengli, Rongsheng and Shenghong Groups in the coastal Liaoning, Zhejiang and Jiangsu provinces.

China will become the leader “in terms of installed refinery capacity” by 2024, as a “U.S. Gulf Coast-type refining hub is emerging along China’s northeast coast,” the IEA said, adding, “Overall, China’s refining capacity additions will be almost double the size of total demand growth.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Seplat Appoints Emeka Onwuka as CFO, Executive Director

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Seplat Named Emeka Onwuka as CFO and Executive Director

Seplat Petroleum Development Company Plc has appointed Mr. Emeka Onwuka as the Chief Financial Officer (CFO) and Executive Director of Seplat, effective from August 1, 2020.

In the statement signed by Mrs. Edith Onwuchekwa, Company Secretary and Chief Governance Compliance Officer, and released through the Nigerian Stock Exchange, Mr. Onwuka has more than 30 years of experience in financial services within Sub-Saharan Africa.

“He has acted as the voice and face of major financial institutions in Nigeria as former Group Managing Director /CEO of Diamond Bank Plc and former Chairman of Enterprise Bank Limited. Mr Onwuka is a Partner at Andersen Tax Nigeria and holds various Board positions as Chairman; FMDQ Securities Exchange Limited; Director FMDQ Holdings Limited; Director, Ecobank Nigeria Limited; and Director, Bharti Airtel Nigeria,” the Company stated.

“Mr Onwuka received his B.SC. in Political Science from the University of Nigeria, Nsukka and holds an MBA from the University of Benin. He is a Chartered Accountant, a Fellow of the Institute of Chartered Accountants of Nigeria, a Fellow of Chartered Institute of Taxation of Nigeria. He has attended executive programs at the Lagos Business School, Wharton Business School and Harvard Business School.

“Mr. Onwuka holds the Nigerian National Honour, Officer of the Order of the Niger (OON). The Board of Seplat is confident that the wealth of knowledge and experience he brings will be a great addition to the Company.

“This announcement is being made in accordance with Rule 4 of the Nigerian Stock Exchange Amended Listing Rules.”

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TAJBank Joins e-Commerce Giants- Launches Nigeria’s 1st Ethical Online Mall

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TaJBank E-commerce

TaJBank Launches Ethical Online Mall

Abuja Nigeria July 8th, 2020  Nigeria’s most innovative Non-Interest Bank, TAJBank, has announced the highly anticipated launch of TAJMall, the nation’s first ethical online shopping mall.

The highly anticipated launch of the e-commerce site, which held recently, is coming closely on the heels of the commencement of its Agency Banking Network which began in June across thirteen (13) states in the country.

To celebrate this milestone, the brand will be holding a week long TAJMall campaign from 6th – 11th July 2020 to sensitize and also reward its new customers to its platform.

“This is a great milestone as we present a fully customer focused e- commerce platform offering 100 percent authentic brands from highly vetted vendors. Our mission is to rebuild trust in the online shopping niche, hence the emphasis on our platform being an ethical shopping mall. We want to deliver on our promise and make this an enjoyable and safe experience not just for our customers, but also for our numerous trusted vendors as well,” said Founder/COO TAJBank, Hamid Joda.

“Our customers place absolute trust that goods will be delivered exactly as requested, and we do not take that trust lightly, he added.

The brand expressed commitment to continuously deploy technological tools on it’s new e- platform to maintain optimal customer service delivery and ensure shopping on TAJMall remains a productive and hassle free experience.

Customers who log onto the tajmall.ng platform (or download the app), will have the opportunity to enjoy massive price slashes, shopping coupons, free shipping and other incredible offers. The Bank also intends to offer financing to its customers who shop on the mall.

“Well beyond our exciting line up of activities, they are assured the highest level of value each time they make a purchase on TAJMall. Our marketing insights have shown that there is an increasing need to match the kind of variety in product offerings that customers yearn for with the exceptional shopping experience that may at times be lacking. We aim to make that an unmatched experience right from the moment our customers visit our mall to the receipt of their items,” affirmed Co-Founder/CMO, Mr Sherif Idi.

Customers shopping on TAJ Mall are guaranteed 100% authenticity, official warranties from the brands, and a 5 day return policy at no extra cost to the customer.

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Warren Buffet to Give Out Another $2.9bn, Total Donations Now $37bn

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Warren Buffett's Donations

Warren Buffet Gives Away $2.9bn, Total Donations Now $37bn

Oracle of Omaha, Warren Buffet, has announced his yearly charitable donations to the five philanthropies he picked to donate most of his fortune to.

The billionaire plans to give out 15.9 million class B shares of Berkshire Hathaway worth $2.9 billion to the five philanthropies. This will bring his total philanthropic donations to $37 billion since 2006.

Warren Buffett

Buffet, who has promised to give away about 99 percent of his fortune, still hold 248,734 Class A shares of Berkshire valued at around $67.5 billion.

However, before he began given out his shares, Oracle of Omaha held 474,998 Class A shares of Berkshire, which would have worth about $129 billion as of today.

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