The Nigerian National Petroleum Corporation (NNPC) has said the country’s oil production will experience a 20 million litres shortfall by 2020.
The shortfall translates to 427,000 litres per day of Premium Motor Spirit (PMS), per day.
This was disclosed by the Group General Director of the Corporation, Dr. Maikanti Baru, while speaking at this year’s Society of Petroleum Engineers (SPE) Oloibiri Lecture Series & Energy Forum
He added that Nigeria’s petroleum product demand is expected to grow from 13.2m metric tonnes (MT) in 2015 to 15.1m MT in 2020 and 17.3m MT by 2025 while the population growth corresponding to this demand is 182million in 2015, 207million in 2020 and 234million in 2025 respectively.
As a way to deal with the imminent downfall, Baru siad, NNPC would be adding 215,000 bpd of refining capacity through private sector driven co-location at its existing refineries in Port Harcourt (100,000 bpd) and Warri (115,000 BPSD) respectively.
The NNPC GMD who disclosed this on Friday in Abuja, said the country would need a refining capacity of 1.52 million bpd in order to meet its PMS requirement by 2025.
“Additionally, NNPC through its new initiative of establishing Condensate Refineries with private sector participation is providing clusters for in-country refining capacity totaling about 250,000 bpd which closes the PMS supply-demand gap and creates positive margins to the investors,” he said.