NNPC ramps up March petroleum product sales to N234.63bn from N188bn
Ben Eguzozie is business a.m. regional lead based in Port Harcourt, providing regional and national coverage for economy, business and finance
You can contact him on ben.eguzozie@businessamlive.com with stories and commentary.
-
White products yearly sales generated N2.129trn, with petrol accounting for N2.113trn
-
Gas flare rate went up 9.50%, as Nigeria among world’s top 7 gas flaring nations
-
Pipeline vandalism went up with 70 vandalized points
The Nigerian National Petroleum Corporation (NNPC) downstream subsidiary, Petroleum Products Marketing Company (PPMC), recorded N234.63 billion revenue from the sale of white products in the month of March this year, representing a 24.7 percent increase from N188.15 billion sales recorded in the previous month of February 2021.
This is contained in the company’s March 2021 edition of monthly financial and operations report (MFOR), indicating total revenues generated from the sales of white products for the period of March 2020 to March 2021 stood at N2.129 trillion, where petrol contributed about 99.24 percent of the total sales with a value of N2.113 trillion.
In terms of volume, this value translates to 1.782 billion litres of white products sold and distributed by PPMC in the month under review compared to 1.4 billion litres in February of same year. This volume is made up of 1.75 billion litres of premium motor spirit (PMS) and 0.45 million litres of automotive gas oil (AGO).
Total sale of white products for March 2020 to March 2021 stood at 17.374 billion litres and PMS accounted for 17.265 billion litres or 99.37 percent.
According to Kennie Obateru, spokesman for NNPC, the national oil company continues to diligently monitor the daily stock of PMS to achieve uninterrupted supply, effective distribution and zero fuel queue across Nigeria.
In the gas sector, the NOC produced 222.74 billion cubic feet (bcf) of natural gas in the month under review translating to an average daily production of 7,183.33 million standard cubic feet per day (mmscfd). For the period of March 2020 to March 2021, a total of 2,911.62 bcf of gas was produced representing an average daily production of 7,409.60 mmscfd during the period.
Production from joint ventures (JVs), production sharing contracts (PSCs) and NPDC contributed about 63.23 percent, 19.78 percent and 16.99 percent respectively to the total national gas production. In terms of natural gas off-take, commercialization and utilization, out of the 210.55 bcf supplied in March this year, 138.38 bcf was commercialized, consisting of 45.42 bcf and 92.96 bcf for the domestic and export market respectively. This translates to a total supply of 1,465.42 mmscfd of gas to the domestic market and 2,998.26 mmscfd of gas supplied to the export market for the month under review.
According to NNPC, this implies that 63.18 percent of the average daily gas produced was commercialized while the balance of 36.82 percent was re-injected, used as upstream fuel gas or flared.
Meanwhile, the national oil company’s gas flare rate went up by 9.50 percent for the month under review (that is, 671.13 mmscfd) compared to average gas flare rate of 7.25 percent (that is, 532.37 mmscfd) for March 2020 to March 2021.
Nigeria is ranked among the world’s top seven gas flaring countries. With huge gas deposits in excess of 203 trillion cubic feet (tcf), the World Bank’s latest Gas Flaring Tracker report for 2020 said, Nigeria in 2020, flared a total of 7.20 billion cubic meters (bcm) of gas, which is 0.63 bcm change from 7.83 bcm in 2019. Although there was a five percent reduction in global gas flaring in 2020 to 142 bcm against 2019’s flare of 150 bcm.
On domestic gas supply to the power sector, a total of 844 mmscfd was delivered to gas-fired power plants in the month of March 2021 to generate about 3,530 megawatts (mw) compared with February 2021 where 825 mmscfd was supplied to generate 3,580 mw.
The report also informed that NNPC recorded 70 vandalized points across its pipeline network in the period under review, representing 29.63 percent increase from the 54 points recorded in the previous month. The Port Harcourt area accounted for 63 percent of the vandalized points, Mosimi area accounted for 21 percent and the Gombe area accounted for the remaining 16 percent.
NNPC said it is working in collaboration with the local communities and other stakeholders to effectively monitor the pipelines with a view to reducing and eventually eliminating the menace of pipeline vandalism.
The March 2021 MFOR is the 68th edition of the report. It is published monthly to keep the Nigerian public up to date with NNPC’s operations in line with the management’s guiding philosophy of transparency, accountability and performance excellence (TAPE).