Seven New Modular Refineries Expected to Begin Operations in Nigeria in 2027, Adding 83,000bpd Capacity

Nigeria’s oil and gas industry could witness a significant expansion in domestic refining capacity in 2027, as seven new modular refineries are projected to commence operations with a combined capacity of 83,000 barrels per day.

The projection was disclosed by George Maher-Bonnett of Argus Media during the OTL Africa Downstream Conference in Lagos.

According to his presentation, Nigeria had four operational modular refineries as of September, with a combined processing capacity of 32,000 barrels per day.

If the seven proposed facilities become operational as projected, they would more than double the country’s existing modular refining capacity, potentially strengthening local production of petroleum products.

However, the presentation did not disclose the identities of the proposed refineries, their owners or locations. It also provided no specific commissioning dates for the individual projects.

The projected expansion comes as the Dangote Refinery continues to increase domestic fuel production, while reports indicate that Nigeria’s demand for petroleum products has declined this year amid rising prices.

The expected addition of 83,000 barrels per day could improve Nigeria’s domestic refining capacity, reduce pressure on fuel supply and support the availability of petroleum products across the country.

However, the actual impact will depend on whether the seven projects are completed and begin operations within the projected timeframe.