Nigeria has resumed petrol import from China. Nigeria is Africa’s biggest oil producer and exporter of crude oil while China is the world’s top importer of crude oil and a major exporter of transportation fuel.
In September 2020 China shipped 37,000 metric tonnes of petrol to Nigeria for the first time since July 2019, according to a Punch report citing the data from the General Administration of Customs.
Nigeria has continued to rely heavily on importation for many years to meet its fuel needs as the nation’s refineries remain in a state of disrepair.
Recently the Minister of State for Petroleum Resources, Timipre Sylva, said that Nigerians should be proud that the Federal Government is set to resume the importation of petroleum products from neighbouring Niger Republic.
Nigeria’s refineries (PHRC, WRPC, KRPC) produced more losses in 2019, than they did in 2018.
In April 2018, Togo became the first African country to receive Chinese petrol when it imported 50,000 mt. It was followed by Nigeria in January 2019 at 51,000 mt, historical GAC data showed.
The most recent diesel exports from China to Africa were in June, with Kenya and South Africa receiving 40,000 mt and 35,000 mt, respectively, according to the data.
China had in April embarked on a buying spree to fill up its storage, taking advantage of cheap oil prices and in the process helping oil price recovery due to perceived improved demand.
China’s annual crude oil imports in 2019 increased to an average of 10.1 million barrels per day (b/d), an increase of 0.9 million b/d from the 2018 average, according to the United States Energy Information Administration (EIA).
China remains the world’s top crude oil importer, surpassing the United States in 2017.
In 2019, 55% of China’s crude oil imports came from countries within the Organization of the Petroleum Exporting Countries (OPEC), mainly Saudi Arabia, Iraq, United Arab Emirates, Iran, Venezuela, and Gabon. The 55% crude import from OPEC is the smallest share since at least 2005.
China’s new refinery capacity and strategic inventory stockpiling, combined with flat domestic oil production, were the major factors contributing to the increase in China’s crude oil imports in 2019.
In 2019, China’s refinery processing capacity increased to an all-time high, averaging 13.0 million bpd for the year, according to the EIA.
By: Ifunanya Ikueze
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