….Approves 7 Marketers For Product Lifting
The Dangote Refinery, the largest single-train refinery in the world, has commenced the refining of Automotive Gas Oil (also known as diesel) and Aviation fuel (Jet AI) about seven months after its inauguration seven months ago.
The refinery began operations in the early hours of Friday following the earlier delivery of six million barrels of crude in tranches to the facility some days earlier by the Nigerian National Petroleum Company Limited (NNPCL), the government-owned downstream company.
The company’s management stated the refinery can meet 100% of Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation fuel, and also have surplus of each of the products for export.
According to the statement, the initial operations of the refinery will be for the production of diesel and aviation fuel before it will commence Premium Motor Spirit (PMS), also known as petrol, refining.
The refinery which was earlier scheduled to begin operations in 2021 but was officially inaugurated by former President Muhammadu Buhari on May 23, 2023, few days to his handing over to the new President Bola Tinubu-led administration on May 29.
During the ceremony, Buhari described the project as “a notable milestone” and “a game changer for the downstream petroleum products market, not only in Nigeria but for the entire African continent.”
In his remarks at the event, the Group Chairman of Dangote Group, Aliko Dangote, said: “Once our plant is fully commissioned… we expect that at least 40 percent of the capacity will be available for export, and this will result in significant foreign exchange entering the country.”
The 650,000 barrel-per-day refinery located at the Lekki Free Zone in Lagos State is estimated to cost $19 billion.
Meanwhile, the company’s management has approved seven major oil marketers for lifting of its refined products even as it had opened discussions with other marketers’ groups.
The approved marketers are Total Nigeria Plc, 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, and NNPC Retail.
The Major Oil Marketers Association of Nigeria (MOMAN) stated that as soon as commercial terms were finalized with the company’s management, marketers will commence the distribution of fuel from the refinery.
The association’s Chief Executive Officer, Mr Clement Isong, confirmed that all members of the MOMAN had registered for purchasing and selling the refined products.
The registration was initiated in 2023.
According to Isong, the commercial terms would be individually negotiated with each marketer.
He expressed the hope that the products would be available at major filling stations as soon as the refinery makes them accessible.
This is even as the Independent Petroleum Marketers Association of Nigeria (IPMAN) and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) groups had also opened discussions with the Dangote Refinery’s management on terms of product loading and supply.
