Nigeria’s modular refining capacity is expected to increase significantly next year, with seven additional refineries projected to begin operations with a combined capacity of 83,000 barrels per day.

George Maher-Bonnett of Argus Media disclosed this on Thursday during a presentation at the OTL Africa Downstream conference in Lagos, where he reviewed developments in Nigeria’s petroleum products market.

He said four modular refineries, with a combined capacity of 32,000 barrels per day, were operational in the country as of September.

The seven proposed facilities would more than double the sector’s existing capacity. However, the presentation did not identify the refineries, their owners or locations, or provide details of their individual capacities and expected commissioning dates.

Maher-Bonnett also highlighted the growing contribution of the Dangote Petroleum Refinery to domestic fuel supply, noting that the facility was operating at a high rate, with petrol production remaining steady.

According to the presentation, Nigeria’s fuel demand had declined this year, partly due to higher pump prices, while increased output from the Dangote refinery was improving the country’s level of self-sufficiency in petroleum products.

The presentation also noted that the economics of shipping petroleum products from Europe to West Africa had weakened, reducing the attractiveness of some import routes.

On government intervention in the sector, Maher-Bonnett said there had been no major intervention during the period under review, apart from a price reduction by the Nigerian National Petroleum Company Limited earlier in the month.

The presentation also highlighted developments in Ghana, where the 45,000-barrel-per-day Tema refinery was increasing production and strengthening domestic supply. It added that rising freight costs were affecting petroleum product trade between Europe, West Africa and the United States.