₦airaland Forum

We just wasted $1.5b on our own that refused to refine a drop of oil

malali:
.

A lot of countries are closing down their refineries to reduce carbon emission and also because importing petrol is cheaper than refining it. I wonder why Nigerians think refining would be cheaper than importing. Unless we subsidize the crude oil

So you think it's best we keep importing finished petroleum products?
From who exactly if I may ask?

jedisco:
So you think it's best we keep importing finished petroleum products?
From who exactly if I may ask?

I am not saying that.If Scotland can find it cheaper to import.
Why do we think it will be cheaper to refine in Nigeria ?
Scotland is a first world country, with minimal corruption compared to Nigeria
With a lot of technical expertise, yet they said it was cheaper to import.
My point is refinery doesn't guarantee cheaper prices than importation in "Nigeria."
Forget what the government is saying, they are just saying it to make Nigerians excited.

Corporate2020:
Interesting things are happening worldwide. The Refinery in the report is not far from my house

Abeg help us stroll enter there go help us ask dem how much to take refine a barrel of crude oil biko.

We wan check somtin.

malali:
I am not saying that.If Scotland can find it cheaper to import.
Why do we think it will be cheaper to refine in Nigeria ?
Scotland is a first world country, with minimal corruption compared to Nigeria
With a lot of technical expertise, yet they said it was cheaper to import.
My point is refinery doesn't guarantee cheaper prices than importation in "Nigeria."
Forget what the government is saying, they are just saying it to make Nigerians excited.

Have you considered cost of labour? Also the availability of raw crude, local market, exchange rate differential e.t.c?
Many western nations have a fairly stable or declining population plus the introduction of electric vehicles and better efficiency means less demand for crude.
How does that compare with Nigeria- a country of over 200million which is rapidly expanding? Even western nations are using sanctions to stop cheap imports killing off local industries.

So should we close dangote refinery and import from who?

While at that, should we also end any attempt at manufacturing and depend on China? We could also stop farming and depend on import afterall some western nations import food.

jedisco:
Have you considered cost of labour? Also the availability of raw crude, local market, exchange rate differential e.t.c?
Many western nations have a fairly stable or declining population plus the introduction of electric vehicles and better efficiency means less demand for crude.
How does that compare with Nigeria- a country of over 200million which is rapidly expanding? Even western nations are using sanctions to stop cheap imports killing off local industries.

So should we close dangote refinery and import from who?

While at that, should we also end any attempt at manufacturing and depend on China? We could also stop farming and depend on import after all some western nations import food.

You have raised good points.
Our main problem lies in the inefficiencies of our systems in place
The same issues that killed NNPC is still alive and it poses an existential threat to Dangote refinery
Dont forget Dangote refinery is limited by downstream and midstream activities, which he has not control over.
Refining is just one step. Nigeria as a whole has to genuinely fight corruption, budgetary inflationary expenditure, corruption,lack of accountability by government officials and rule of law enforcement.
Not until we fix all these socioeconomic ills, nothing will work......Not even Dangote refinery.

Faiththatworks:
This is what I call the Dangote Effect.
People underestimate how Africa was really supporting the economy of many European countries.
The Dangote Refinery has succeeded in shutting down demand for almost 40 million litres of PMS,5 million liters of Diesel and 5 million litres of Aviation fuel used daily in Nigeria.
When you add the demand likely to come from other West African countries you will understand why the Europeans will be never want Africa to develop.
We feed them with the Crude oil they need at very cheap prices and buy back the refined products at very expensive prices.
God bless Alhaji Dangote for liberating West Africa from the hands of these parasitic Colonial economic parasite.
Crude oil will still be in existence for another 50 years,if in doubt,even Kamala Harris has changed her position on fracking in the Us.
She has abandoned her green deal and is now favoring America producing more crude oil with fracking.
God bless Nigeria.

Where are other Billionaires nah? Let them join Dangote in industrialising this our dear country.

malali:
You have raised good points.
Our main problem lies in the inefficiencies of our systems in place
The same issues that killed NNPC is still alive and it poses an existential threat to Dangote refinery
Dont forget Dangote refinery is limited by downstream and midstream activities, which he has not control over.
Refining is just one step. Nigeria as a whole has to genuinely fight corruption, budgetary inflationary expenditure, corruption,lack of accountability by government officials and rule of law enforcement.
Not until we fix all these socioeconomic ills, nothing will work......Not even Dangote refinery.

We were able to attain self-sufficiency in cement production despite all that. No country is without challenges.

Yeah, there are challenges but they would only be solved by putting in effort and not raising hands, doing nothing and waiting for someone to come solve our problem while we export our jobs and our population languishes in poverty.

Dangote refinery is already working despite all those issues. We also have other local businesses e.g Air Peace trying their best. It can be frustrating but the solution is not to ask them to shut down until Nigeria fixes all the problems you listed. They need our support and we should push them to do better.

GerogeI:
Thanks for this question. Refining petrol is a way to add value to the primary export. But irrespective, Nigeria's problem is not petrol import, locol refining, inflation or high cost of living. These things are all consequences of a failed currency system. Nigeria's economic problems are primarily an overcentralised and internationally ineffective currency. With about 13000% devaluation over the last five decades, the currency is treated as the option for common masses, while elites and the Federal Government operate and make policies to covet USD. The last two regimes took it to new heights by using currency devaluation to bargain for new loans of USD.

This is not peculiar to Nigeria, but common among low IQ African countries, including Egypt in recent years. They place so much value on earning forex, and end up killing themselves economically. Only South Africa with their Dutch Europeans seems immune to the mental disease. How come USA and Europe are not struggling to earn forex, yet they are not selling a lot of manufactured exports. Both are net Importers?

If paper currency are subject to political and technological prowess which we do not have. The right thing to do is to switch to commodity currencies which are not subject to manipulation. Infact a default feature of commodity currency like gold is that they cause deflation, not inflation. Meaning an old piece of gold coin becomes more valuable with time, hence can buy more goods.

You have got some serious grey matter. Excessive devaluation is not always key.

njelrapheal:
you talk like a child. does scotland have crude?

You are the one who talk like a child.
Do your research first

jedisco:
We were able to attain self-sufficiency in cement production despite all that. No country is without challenges.

Yeah, there are challenges but they would only be solved by putting in effort and not raising hands, doing nothing and waiting for someone to come solve our problem while we export our jobs and our population languishes in poverty.

Dangote refinery is already working despite all those issues. We also have other local businesses e.g Air Peace trying their best. It can be frustrating but the solution is not to ask them to shut down until Nigeria fixes all the problems you listed. They need our support and we should push them to do better.

We have been pushing for them to do better for over 20 years, instead it has worsened every year. Einstein defined insanity as doing it over and over the same way and expecting different results.
You are no better patriot than i am, but wishful thinking is not working for us. We have a government filled with unpatriotic bastards. Yes i said it. And nothing will work till that is addressed. And FYI i am not a peter Obi supporter.
We have problems that can all be fixed within 6 months, but it has continued for over 20 years because some people are benefiting at the expense of everyone else and somehow they have convinced someone like your self to continue praying and hoping while the debauchery continues.

Corporate2020:
Interesting things are happening worldwide. The Refinery in the report is not far from my house

I envy you o. I want to leave this level, but it is really difficult. How are you people doing it?
Is there any special thing people do to succeed?
The more you try to rise, the more you go down.
I am asking a very honest question.

GerogeI:
Thanks for this question. Refining petrol is a way to add value to the primary export. But irrespective, Nigeria's problem is not petrol import, locol refining, inflation or high cost of living. These things are all consequences of a failed currency system. Nigeria's economic problems are primarily an overcentralised and internationally ineffective currency. With about 13000% devaluation over the last five decades, the currency is treated as the option for common masses, while elites and the Federal Government operate and make policies to covet USD. The last two regimes took it to new heights by using currency devaluation to bargain for new loans of USD.

This is not peculiar to Nigeria, but common among low IQ African countries, including Egypt in recent years. They place so much value on earning forex, and end up killing themselves economically. Only South Africa with their Dutch Europeans seems immune to the mental disease. How come USA and Europe are not struggling to earn forex, yet they are not selling a lot of manufactured exports. Both are net Importers?

If paper currency are subject to political and technological prowess which we do not have. The right thing to do is to switch to commodity currencies which are not subject to manipulation. Infact a default feature of commodity currency like gold is that they cause deflation, not inflation. Meaning an old piece of gold coin becomes more valuable with time, hence can buy more goods.

a very nice insight

descarado:
You are the one who talk like a child.
Do your research first

I did and his submission to the Europe shift from refining locally does not align to a clearly given reason for the shutdown. he further insinuation to importing being cheaper than refining locally is what i have issues with especially for a country like Nigeria that produces locally

malali:
We have been pushing for them to do better for over 20 years, instead it has worsened every year. Einstein defined insanity as doing it over and over the same way and expecting different results.
You are no better patriot than i am, but wishful thinking is not working for us. We have a government filled with unpatriotic bastards. Yes i said it. And nothing will work till that is addressed. And FYI i am not a peter Obi supporter.
We have problems that can all be fixed within 6 months, but it has continued for over 20 years because some people are benefiting at the expense of everyone else and somehow they have convinced someone like your self to continue praying and hoping while the debauchery continues.

from his write up, where did he insinuate that they need praying. in as much as your submissions on the dire situation being hopeless, his stance on PUSHING them to do better is no way a conviction from "THEY" to continue praying. if for anything that pushing can mean a total rejig of the system

njelrapheal:
I asked that in relation to the scenario. its a no brainer. its just like saying there is still oil in oloibiri

Ego will not let you admit that you goofed when you asked if there was oil in Scotland. I'm not ready to extend the scope of this conversation with you. I simply corrected you and I expected you to accept the correction simply and not trying to create an impression of an "intellectual".

alcuin:
Ego will not let you admit that you goofed when you asked if there was oil in Scotland. I'm not ready to extend the scope of this conversation with you. I simply corrected you and I expected you to accept the correction simply and not trying to create an impression of an "intellectual".

i really dont understand how you arrived at your conclusion. its fine though. people interpret written words differently. i guess that is the problem in the word today.

RenaissanceGuy:
A Scottish refinery built 100 years ago is still functional, while the ones built in Nigeria lasted for only 30 years plus and packed up.

It never packed up it was not properly maintained, which led to a total shutdown in over 22yrs

After 101 years.

malali:
Several refineries are scheduled to shut down in 2024 and 2025 as part of broader energy transitions:

1. Grangemouth Refinery in Scotland: This refinery, operated by Petroineos, is set to close in 2025, impacting 400 jobs. The site will be converted into a fuels import terminal due to economic challenges .
2. LyondellBasell’s Houston Refinery: Originally planned to shut down by the end of 2023, this refinery will now remain operational until the first quarter of 2025. The company plans to convert the site for sustainable operations in line with its circular economy goals .
3. Shell’s Wesseling Refinery in Germany: Shell will shut down its oil refining operations at the Wesseling site by 2025, transitioning it to chemical production. This move is aimed at reducing carbon emissions as part of Shell’s broader decarbonization strategy .

These closures reflect the shift toward sustainability and a reduction in carbon emissions in the refining sector.​

A lot of countries are closing down their refineries to reduce carbon emission and also because importing petrol is cheaper than refining it. I wonder why Nigerians think refining would be cheaper than importing. Unless we subsidize the crude oil

What is your point that we should abadon our God given resources because one Oyinbo man thinks it will hurt the earth

saddler:
While other countries are closing down hydrocarbon refineries and moving onto green energy, one failed country called Nigeria is spending billions of naira yearly to maintain her barren, corruption-laden and unproductive refineries.

Weyoukipkwayet?

Don't just form sophistication when it come to energy discussion in Africa.

Stop playing slavery to the white man

malali:
The Grangemouth refinery, Scotland’s only crude processing facility, is set to close in the second quarter of 2025 ,its owners confirmed on Thursday, as the refinery has been struggling to compete with the new complex facilities in Asia, Africa, and the Middle East.

The Grangemouth refinery, which was opened by the predecessor of BP in 1924, expanded its production into petrochemicals in the 1950s.
However, the facility with a refining capacity of 150,000 barrels per day (bpd) has been unable to compete with the massive new refineries that major oil firms and refiners have built in Asia and the Middle East in recent years.

The refinery’s owner Petroineos, a joint venture between PetroChina and INEOS, on Thursday announced its intention to cease refinery operations at Grangemouth and transition the site to a finished fuels import terminal and distribution hub during the second quarter of 2025, subject to consultation with employees.

But “The INEOS businesses at Grangemouth, namely INEOS O&P UK and INEOS FPS (Forties Pipeline System), will continue as normal delivering high quality services and products to our customers and are largely unaffected by this change,” INEOS said today.

The closure of the refinery will result in 400 job losses as the number of employees at the site would be cut to 75 from 475.

The conversion of the site to a fuel import terminal would “safeguard fuel supply for Scotland” but this terminal would need fewer than 100 employees, according to the company.
Some major oil firms, including Shell and Eni, have recently announced they would convert refineries in Europe to meet demand for base oil and biofuels.

In January 2024, Italy’s Eni said it would convert its refinery in Livorno into a biofuels-making facility in a second announcement of an upcoming closure of a European oil refinery in less than a week.

Eni’s announcement came days after Shell said that it plans to convert its oil refinery at the Wesseling site in Germany into a production unit for base oils.

By Charles Kennedy for Oilprice.com

NNPC should immediately go and buy all the 'tokunbo' distillators
Perhaps it can work for one of our refineries

pharmagba:
NNPC should immediately go and buy all the 'tokunbo' distillators
Perhaps it can work for one of our refineries

Will crude distillators maintain themselves ?
dey play.....this same naija

Hello,

If you are into crude oil and gas business and you are looking for a buyer or seller
to buy or sell your crude oil products, there are so many company platform this days
like https://www.virtacome.com that can enable you to connect with so many crude oil products
international buyers and sellers worldwide.

This company platform is where so many crude oil products dealers from different part
of the world connect with each other to buy the crude oil products they want to buy or
sell the crude oil products they want to sell.

I use this company platform to connect with different crude oil dealers from different
countries in the world.

You can visit and register with the company website here https://www.virtacome.com to connect
you with different crude oil dealers in the world to enable you to sell your crude oil
products or buy your crude oil products with each other.