Niger's new oil refinery operating at half capacity: minister

NIAMEY (Reuters) - Niger's Chinese-operated Soraz oil refinery is currently operating at half its 20,000 barrel capacity due to an inability to compete with regional price levels, the West African country's oil minister said on Sunday.

The refinery, 60 percent owned by Chinese state oil company CNPC and 40 percent by Niger, was inaugurated in November 2011 amid hopes it would make Niger fuel self-sufficient and bring down prices.

A third of fuel production is destined for domestic consumption and the rest for export. However, the project has been plagued by problems including violent demonstrations by protesters complaining that fuel remains unaffordable.

"Today Soraz produces 10,000 barrels per day, and it's saying that it is due to a shortfall in the export level," Foumakoye Gado said during a meeting with the refinery's managers.

Niger's state oil company, Sonidep, has officially set the price of its exported gasoline at 360 CFA francs per litre, however there have been few takers among the country's neighbours.

"The countries of the sub-region - Mali, Burkina Faso, Nigeria - want to come buy in Niger, but on the condition that they gain something ... They have to earn something, even if it's one franc per litre," Gado said.

The minister said the government planned to put in place a panel charged with fixing more competitive price levels for 2013.

Niger said last month it would reduce the cost of fuel at the pumps by about 7 percent next year after China cut the interest rate on the loan that funded the plant. But taxi drivers said the plan was not enough and earlier this month announced a 50 percent increase in fares.

A five-day strike by fuel truck drivers complaining of lengthy loading delays at the Soraz refinery ended over the weekend.

Source: http://news.yahoo.com/nigers-oil-refinery-operating-half-capacity-minister-052312673--finance.html

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