30 Jul

Daily watch – Refineries coming back online, Reps to force multinationals to list on Exchange

  • The Port Harcourt and Warri refineries have started preliminary production following maintenance work, the NNPC said on Wednesday. The PHRC is ramping up operation to about 60% of its 210,000 barrels per day capacity, while WRPC is projected to hit 80% of its 125,000 bpd installed capacity. NNPC said that the PHRC is projected to boost local refining capacity with a product yield of 5 million litres of petrol per day, while Warri Refinery will contribute 3.5 million litres. The NNPC also revealed that it had repaired a key products pipeline carrying gasoline to Lagos. It was forced to shut down the trunk line after an explosion last week near the town of Arepo in Ogun state.
  • House of Representatives Speaker, Yakubu Dogara, said on Wednesday that the House may compel multinational oil, gas and telecommunication corporations to list a certain percentage of their value on the Nigerian Stock Exchange (NSE). According to Dogara, “apart from capital inflow sought, the market needs to be deepened, as most of the big International companies in Nigeria do not participate in the Nigerian Stock exchange. This is sad because these companies account for a huge percentage of revenues in oil, communication and energy.”
  • Nigeria is aiming for an increased market share in the Liquefied Natural Gas market. The Nigerian Liquefied Natural Gas Company (NLNG) expects to take delivery of four LNG carrier ships before year-end and another two next year. NLNG has signed agreements with South Korea’s Samsung Heavy Industries and Hyundai Heavy Industries in 2013 to acquire 6 LNG carrier ships, costing more than $1.2 billion, to boost its fleet of 23. Funding the construction of the vessels are the South Korea Export and Import Bank and other lenders. Nigeria’s NLNG, the world’s fourth-biggest LNG plant, is owned by NNPC, Royal Dutch Shell, Total and Eni.