Shell Petroleum Development Company’s (SPDC) Executive Director, Mr. Malcolm Brinded recently said that the company cannot build a refinery in Nigeria because there are surplus refineries across the world. As a result, the investment case for building a refinery in Nigeria does not make good business sense.
According to him:
“I will also say because of the surplus of refineries available in a way, one has to look very closely whether building new refineries is a good investment for anyone not just for Shell but for countries involved.
“In today’s world, not looking at the past but where we are today, there is surplus of refinery capacity which essentially means many refineries in the world run at a loss. “Which also means one can get refined products back again and pay very little for it to be refined,” he said.
Many Nigerians have responded emotionally to the comment as it indicates that few investors will be interested in investing in building refineries in Nigeria.
What are your thoughts?