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NMDPRA: 23 new refineries to add 850,000bpd capacity

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• ₦287b invested in gas projects

By Grace Edet
The Federal Government has issued 23 refinery Licences to Establish (LTE) within the last four years following the enactment of the Petroleum Industry Act (PIA) 2021, as part of ongoing reforms to boost local refining capacity and energy sufficiency.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed this on Thursday at the maiden conference of the Energy Correspondents Association of Nigeria (ECAN) in Abuja, themed “Four Years of the PIA: Achievements, Gaps and the Road Ahead.”
Representing the Authority Chief Executive, Engr. Farouk Ahmed, NMDPRA’s Director, Legal Services, Tolurosho Joseph, said the new refinery projects, when completed and commissioned, would add over 850,000 barrels per stream day (bpsd) to Nigeria’s existing 1.125 million bpsd refining capacity.
He said: “Twenty-three refineries ‘Licences to Establish’ were issued from 2021 to date which, when constructed and commissioned, will add over 850,000bpsd refining capacity to the existing 1,125,000bpsd capacity.”
He also revealed that crude oil supply to domestic refineries increased from about 20,000 barrels per day (bpd) in 2023 to over 40,000bpd in 2025, a development enabled by the implementation of key provisions of the PIA.
Ahmed further highlighted improvements in refined product supply, noting that Premium Motor Spirit (PMS) availability grew significantly from 1.3 billion litres in 2024 to 3.8 billion litres in 2025, describing the outlook as “highly positive.”
On gas sector development, Ahmed disclosed that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) has invested over ₦287 billion in various gas infrastructure projects involving 16 companies across 62 projects as of October 2025. He added that the Fund also catalysed an additional $500 million investment in gas infrastructure through a partnership with Afreximbank, aimed at expanding energy access and driving economic growth.
Key projects under this initiative include the UTM Offshore FLNG, NLNG Train 7, Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline, OB3 Gas Pipeline, AIPCC Refinery, Indorama Fertiliser Plant, Greenville LNG & LCNG projects, Waltersmith Refinery Train 2, and Supertech Methanol Project.
Ahmed also announced that the Authority issued 10 gas distribution licences covering 692 kilometres of pipeline network with a combined capacity of 712 million standard cubic feet per day (MMscf/d) connecting 412 customers. The total investment value in the system, he said, was estimated at $639.07 million, with multiplier effects across energy, manufacturing, agriculture, and other sectors.
In addition, the NMDPRA developed Gas Trading and Settlement Regulations (2023) to establish a secure and efficient framework for gas trading and exchange platforms. This effort led to the award of Nigeria’s first-ever Gas Trading Exchange Licence to Jex Market Limited in May 2025.
According to Ahmed, prudent regulation by the Authority has ensured steady supply and product sufficiency within an average of 12 to 48 days, effectively eliminating nationwide fuel shortages and stimulating economic activities.
He added that the NMDPRA, in collaboration with S&P Global Platts, convened the first West African Product Reference Market Conference in May 2025, where stakeholders agreed to position Lagos as a sub-regional hub for product price referencing and market offtake.
Reflecting on the Authority’s progress since its establishment, Ahmed said: “In the last four years, whenever I have had the opportunity to speak about our achievements and challenges at the NMDPRA, it always fills me with pride because I am able to report tangible progress at each step of the journey.”
He added that the anniversary and conference provided an opportunity “to reflect on how far the PIA has changed the dynamics of regulation in Nigeria’s midstream and downstream sectors.”

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Energy

8,500 transmission capacity: Low demand stalls generation of 3,500MW

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• Nigeria conducts grid synchronisation test connecting 15 countries for four hours

The Ministry of Power yesterday said despite the availability of 8,500MW transmission capacity in the Nigerian Electricity Supply Industry (NESI), low demand from the Distribution Companies (DisCos) has limited generation to 5,000MW, stalling 3,500MW.
As of July 17, 2025, the wheeling capacity was 5,500MW.
But the ministry disclosed its recent wheeling capacity in Abuja during a media briefing where it announced that Nigeria successfully conducted a grid synchronization test with 15 West African countries for four hours on November 8, 2025.
“Today, the minimum grid capacity we can even communicate is 8,500MW of capacity. If our generation reaches 8,000 MW today, the grid can comfortably and conveniently transmit it,” Adelabu said.
Besides, the Nigerian Independent System Operator (NISO), Market Operation Executive Director, Dr. Edmund Eje, explained that since electricity cannot be stored, the industry only generates energy based on demand.
His words: “The amount of energy generated is equal to the amount of energy that will be transmitted, and it is also equal to the amount of energy that is demanded by the distribution companies. It is simultaneously consumed.
“You don’t stall energy anywhere. The transmission capacity can carry 8,500MW, but it can only carry what can be consumed. Generators will not generate more than what will be consumed at the same time.”
On synchronization, he said the feat of successful synchronization will not affect the allocation of energy for domestic consumption.
Eje said that although there is a regulation that Nigeria allocates 600MW for bilateral trade, production constraints presently limit it to 360MW.
Adelabu, however, described the synchronization test success as a step towards the elimination of grid collapse from the industry, noting it means that there is confidence that the system is now resilient.
He described it as a landmark development in the evolution of West Africa’s electricity architecture.
He confirmed that on 8th November 2025, Nigeria successfully conducted a grid synchronisation test connecting the national electricity grid with the interconnected West African Power Pool (WAPP) system.
According to him, the exercise represents the first time in history that Nigeria has operated in a unified, stable, and fully harmonised configuration with the rest of the sub-region.
He clarified that while it is not yet a permanent synchronisation, the successful test clearly demonstrates that regional technical alignment is feasible and marks a major step toward eventual full integration.
Adelabu further noted that the synchronisation exercise, conducted between 05:04 a.m. and 09:04 a.m., involved the Nigerian grid which includes Niger Republic and parts of Benin and Togo and the rest of West Africa’s interconnected systems covering Ghana, Côte d’Ivoire, Burkina Faso, Liberia, Sierra Leone, Guinea, Senegal, The Gambia, Guinea Bissau, and Mali.
He said for four uninterrupted hours, power flowed seamlessly across national borders, operating at a single stable frequency and proving that West Africa is now technically capable of functioning as a unified power bloc.
He said the achievement ranks among the most significant milestones in the history of WAPP.
He said the test marks the first successful large-scale synchronisation attempt since 2007, when a short-lived trial lasted only seven minutes before failing.
Adelabu said Nigeria has made history with the successful synchronization of the national grid with the West African Power Pool interconnected system.
For four unbroken hours, according to him, electricity flowed from Nigeria and Niger into the entire West African sub-region covering Benin, Togo, Ghana, Côte d’Ivoire, Liberia, Sierra Leone, Guinea, Senegal, Mali, The Gambia, and Guinea-Bissau operating at a single, stabilized frequency.
Earlier at the NISO Maiden Stakeholders’ Engagement, the Managing Director, Engr. Abdul Mohammed said the milestone recorded with the synchronization milestone is more than a technical success, since it positions Nigeria as a regional power hub; opens new avenues for electricity trading; unlocks foreign exchange potential; and reinforces investor confidence in the emerging Nigerian electricity market.
According to him, a resilient electricity market requires more than engineering; it requires relationships.
He said it requires trust among service providers, trust between the market and regulators, trust between the government and operators, and, above all, trust from the Nigerian people.

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Energy

Brent rises 1.32% to $65 as drone strike halts 260,000bpd Russian refinery

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By Grace Edet

Crude oil prices edged higher on Tuesday after a Ukrainian drone strike knocked out one of Russia’s largest refineries, disrupting 260,000 barrels per day (bpd) of processing capacity and raising fresh concerns over global supply stability as winter demand builds.
Brent crude was up 1.32 per cent at $65.05 per barrel at 9:00 WAT, with analysts warning that the outage could trigger further price increases in the coming days.
The Ryazan refinery, Russia’s fourth-largest and operated by Rosneft, has now been hit twice in less than a month as Ukraine escalates its long-range strike campaign. The latest attack halted the plant’s main crude distillation unit, which accounts for roughly 5 per y of Russia’s total refining capacity.
Industry sources told reporters that the refinery will remain shut until at least December 1, adding that “no product deliveries are expected before then,” while several secondary units have also been idled.

Prices Mixed Across the Energy Market

While Brent gained, WTI held steady at $60.90 per barrel, showing no change. Murban crude ticked up by 1.06 per cent to $66.46, whereas natural gas slipped 0.16 per cent to $4.368. Analysts say the muted price response masks rising anxiety beneath the surface.
“Market sentiment has turned cautious. If these outages persist or Moscow’s infrastructure comes under renewed fire, the supply picture could tighten very quickly,” an energy expert, Mustapha Shuaid said.

 

Winter Demand Meets Heightened Geopolitical Risk

The attack comes at a sensitive period, with temperatures dropping across Europe and Asia. Energy markets typically enter a high-demand phase from late November, making geopolitical disruptions more consequential.
Ukraine’s strategy has increasingly shifted toward high-impact targets. According to the Centre for European Policy Analysis, Kyiv is now focusing on “high-value refinery equipment like cracking units — assets that are harder to replace and more disruptive when damaged.”
Recent strikes have also hit terminals and export routes, including the strategic Novorossiysk port on the Black Sea.

Market Braces for Upside Risk

Although front-month prices remain relatively stable, traders say the underlying risk of a significant price upturn is rising. The outage at Ryazan, combined with the threat of additional strikes, could squeeze Russian product exports and rattle global supply chains.
“The next few weeks will be pivotal. Any escalation could be enough to disrupt balances and trigger a price rally, with spillover inflation risks for energy-dependent economies,” another analyst, Akin Owolabi told TheTrustNews.com.
With the Ryazan plant offline and Russia’s refining network increasingly exposed, the oil market enters the winter season on a fragile footing.

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Energy

Diesel falls to ₦979/L in Lagos

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By Grace Edet

Diesel prices in Lagos have dropped below ₦1,000 per litre for the first time in months, offering rare relief to transport operators, manufacturers and SMEs.

Market checks on Tuesday showed rates as low as ₦979 per litre at Mobil Idowu Egba, ₦980 at NNPC Retail Igando and ₦995 at Petrocam Isheri, driven by stronger domestic supply and heightened competition among retailers.

But fresh cost indicators suggest the drop may be short-lived. New data from the Major Energy Marketers Association of Nigeria (MEMAN) shows diesel landing cost has climbed to ₦980.28 per litre, signalling pressure on retailers and raising the likelihood of a price rebound.

According to market analysts, the rising landing cost is being driven by firmer international prices, higher cargo premiums and renewed bulk purchases by major distributors seeking to replenish stock.

They warn that the current sub-₦1,000 pump prices do not reflect the cost realities facing importers.

Foreign exchange volatility is compounding the pressure. The naira traded between ₦1,430 and ₦1,450 to the dollar over the past week, creating uncertainty for fuel traders and affecting forward pricing.

New coastal pricing formulas tied to Platts benchmarks are also shaping expectations for higher replacement costs.

Analysts note that Dangote Refinery’s lack of any announced price reduction is another sign that the current relief may not last. Market behaviour suggests wholesalers may soon begin building inventories in anticipation of upward adjustments.

“Diesel may have dipped below ₦1,000, but all cost indicators point to a likely rebound. Rising landing costs and FX pressure will inevitably filter through the supply chain,” a Godfrey Olatunde, a Lagos-based energy analyst told TheTrustNews.com.

With cost drivers now trending upward, stakeholders warn that the modest price drop recorded this week may be temporary as the market prepares for another adjustment.

 

 

 

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