Dangote Petroleum Refinery has commenced production of diesel and aviation fuel.
Mr Anthony Chiejina, Group Head, Corporate Communications, Dangote Group, confirmed this in a statement to newsmen in Lagos.
Chiejina quoted the President of Dangote Group, Alhaji Aliko Dangote, to have elatedly thanked President Bola Ahmed Tinubu for his support, encouragement and thoughtful advice towards the actualisation of this project.
Dangote also thanked the Nigerian National Petroleum Company Ltd., the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigerians for their support and belief in the historic project.
According to him, “We thank President Tinubu for his support and for making our dream come true.
“This production, as witnessed today, would not have been possible without his visionary leadership and prompt attention to details.
“His intervention at various stages cleared all impediments, thereby accelerating the actualisation of the project.
“We also thank the NNPCL, NUPRC and NMDPRA for their support.
“These organisations have been our dependable partners in this historic journey.
“We also thank Nigerians for their belief and support in this project,” he said.
Dangote said: “We have started the production of diesel and aviation fuel, and the products will be in the market before the end of the month.
“This is a big day for Nigeria. We are delighted to have reached this significant milestone.
“This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects.
“This is a game changer for our country, and I am very fulfilled with the actualisation of this project.
“The refinery has so far received six million barrels of crude oil at its two SPMs located 25 kilometres from the shore.
“The first crude delivery was done on Dec. 12, 2023, and the 6th cargo was delivered on Jan. 8, 2024,” he added.
He said that the refinery can load 2,900 trucks a day at its truck-loading gantries.
He added that the products from the refinery will conform to Euro V specifications.
Dangote boss said that the refinery design complies with the World Bank, US EPA, European emission norms, and Department of Petroleum Resources (DPR) emission/effluent norms. State-of-the-art technology.
“I must extend our sincere appreciation to our Bankers and financiers, both local and offshore, who demonstrated a great deal of patience, in seeing us through many difficult times.
“In the same vein, we thank the Government of Lagos State, under the leadership of Babajide Sanwo-Olu, who has been incredibly proactive in ensuring that the many challenges we encountered in the course of executing this project were quickly resolved.
“I thank him immensely.
“I also sincerely thank our host communities and their traditional leaders for their sustained patience, forbearance, and admirable willingness to work with us to find amicable and win-win resolutions to the many issues we have had to deal with as the construction of this huge facility progressed.
“Our staff have also contributed so immensely to the success of this project. I thank them profusely,” Dangote added.(NAN)
Refinery Rehab: Don’t Expect Immediate PMS Price Crash, Experts Tell Nigerians
Some Oil and Gas Experts have said that the coming on stream of both Port Harcourt and Dangote refineries may lead to some marginal reduction in the cost of petroleum products and not a significant price crash.
The experts made this known in an interview on Sunday in Abuja.
According to them, some ancillary costs such as freight and port charges, among others would have been eliminated to achieve the marginal reduction.
The Federal Government had on Dec.21, announced the mechanical completion and flare start-up of the Port Hacourt Refining Company Limited (PHRC) and the subsequent streaming of its phase two in 2024.
This, according to the Minister of State Petroleum (Oil), Sen.Heineken Lokpobiri, will herald the commencement of the production of petroleum products after the Christmas break.
The PHRC comprised of two refining units, with the old plant having a refining capacity of 60,000 barrels per day (bpd) and the new plant 150,000 bpd, both summing up to 210,000 bpd.
Reacting to the development, an Associate Professor of Energy and Natural Resources, University of Abuja, Olanrewaju Aladeitan, said there should be some marginal reduction in petrol prices as some ancillary cost would have been eliminated.
However, he explained that the price of petroleum products may not come down significantly as to describe it as crashing.
“The price may not come down significantly considering the fact that crude oil and condensates supply for the domestic market under the Petroleum Industry Act is going to be based on a willing supplier and a willing buyer basis.
“And the fact that the supply of crude oil will be commercially negotiated having regard to prevailing international market price for similar grades of crude,” he said.
With this provision, he said there would be no dedicated percentage of crude for local refineries.
“Hence international market price which of course is denominated in dollars will still be the determinant of cost of the crude oil that would be refined.
“So I do not see how the price of Petroleum products will crash,” Aladeitan said.
Also speaking, Mr Yushau Aliyu, an Economic Expert, said reaching to a mechanical test of the refinery after a very long fruitless effort was an indication that part of our refined Premium Motor Spirit (PMS) deficit would be attended.
Aliyu described it as a good signal of recovering in the forex deficit which dominated the dwindling liquidity crisis.
“In addition, the new Nigerian National Petroleum Company Limited (NNPC Ltd.) is responding to the immediate solution for availability of PMS in the economy.
“We are expecting the NNPC Ltd.’s retail stations to reduce their pump price due to absence of landing cost in the short term effects,” he said.
Another oil and gas expert who preferred to remain anonymous said it was obvious that some people in the oil and gas sector were engaged in an act of sabotage.
He frowned at the situation where the government preferred to spend so much, including foreign currency, to import fuel, rather than fix it refineries.
“They claim that the 60,000 barrels capacity refinery in Port Harcourt is back on stream, while the 150,000 barrels capacity will work soon.
“We are waiting to see them work, including that of Warri and Kaduna. When they are put to use, let’s see why fuel prices will not crash,” the expert said.
NAN reports that pump price of PMS has increased to N660 per litre at various fuel stations, while NNPC Ltd.’s retail outlets sell at N617 since the removal of subsidy in May 2023 due to high crude cost and high foreign exchange rate.
The after effect of the removal and high cost of fuel brought untold hardship and suffering on Nigerians due to inflation, increase in goods and services, among others. (NAN)
NNPC Ltd, TotalEnergies Sign MoU on Adoption of Methane Detection Technology
The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed a Memorandum of Understanding (MoU) with TotalEnergies for adoption and deployment of Airborne Ultralight Spectrometer for Environmental Application (AUSEA) in its upstream operations.
The agreement is a direct benefit from the Company’s participation at the recently concluded United Nations Climate Change Conference (COP28) in Dubai, UAE.
A statement on Tuesday by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd, stated that with the agreement, the company would be able to deploy the TotalEnergies AUSEA, known as methane detection technology on its upstream operations sites.
This, will ascertain the level of methane emissions from them, with a view to working out emission curtailment measures to help in combating global warming and climate change.
The MoU was signed by Oritsemeyiwa Eyesan, NNPC Ltd’s Executive Vice President, Upstream, and Managing Director and Country Chair, TotalEnergies EP Nigeria, Matthieu Bouyer, on behalf of their respective companies.
Putting the deal in proper perspective, the NNPC Ltd’s Executive Vice President, Upstream, Oritsemeyiwa Eyesan, said the pilot phase of the TotalEnergies AUSEA deployment would be on NNPC Ltd’s owned operations.
Eyasan added that the deal would enable the company to deploy methane abatement measures.
Other benefits of the TotalEnergies AUSEA technology include identification of unaccounted emission sources, establishment of a basis for querying and improving current emission reporting processes.
It will aid in provision of data to review operational system and implement corrective actions, and estimation of flare combustion efficiency.
The agreement was signed under the watch of the Group Chief Executive Officer (GCEO) NNPC Ltd, Mele Kyari, and Chairman and Chief Executive Officer of TotalEnergies, Patrick Pouyanné.
Speaking at the event, Kyari described TotalEnergies as a great and reliable partner over the years with whom the company was looking forward to exploring greater opportunities in the nation’s energy sector.
On his part, Pouyanné said his company was offering the technology to NNPC Ltd, in keeping with its commitment to promote responsible production of hydrocarbons.
He applauded NNPC Ltd for its successful transition into a limited liability company, stressing that he could feel the energy that the reforms have brought about, not only in the company but also in the sector. (NAN)
IPMAN Urges S’East NASS Caucus Intervention to Revive Aba, Enugu Depots
The Independent Petroleum Marketers Association of Nigeria (IPMAN), Aba Depot, has appealed to the South-East National Assembly (NASS) Caucus to wade into the protracted crisis that paralysed operations at the Aba and Enugu depots.
The Chairman of the association, Mr Oliver Okolo, made the appeal in an interview in Aba on Tuesday.
Okolo said that business activities at the NNPC Aba depot came to a standstill about two years ago and rendered the facility moribund.
He spoke extensively on the poor state of the depot and the economic consequences on IPMAN members and other anciliary businesses.
He said that at least 2,000 direct and indirect businesses that usually took place daily at the depot had all closed down.
According to him, at a time the depot was functioning at about 40 per cent capacity, it supported many ancillary businesses, aside from marketers.
He said that at least 200 trucks usually loaded products at the depot daily, hence engaging not less than 600 truck drivers with their two support persons.
“There were also scores of vendors in food and assorted wares, including water and drinks, amongst other businesses that were sustained by the depot.
“All these have shut down,” he said, adding that the depot and it’s environs as well as the IPMAN Secretariat had been overgrown with bushes and taken over by flood water.
Okolo also said that the equipment at the 45-year-old depot, including loading amps, storage tanks and pumping machines, had long become obsolete and dysfunctional due to age.
He said that the facility needed a total overhaul and that the machines required total replacement with state-of-the-art equipment for greater efficiency.
The IPMAN chieftain also identified the deplorable state of the only road leading to the depot from Osisioma Junction, off the Enugu-Port Harcourt Expressway, as another major setback to the operations at the depot.
“The road got so dilapidated that trucks, cars and tricycles could not pass through to the depot,” he said.
According to him, the marketers pooled personal funds, purchased 40 trucks of 30 tons of hard cores, which were poured on the road as palliative to make it passable.
He said that aside from their personal efforts, the association sought the intervention of former Gov. Okezie Ikpeazu, who later awarded the road for rehabilitation.
He said that the project later stalled after the Federal Government allegedly directed the state to hands off because it is a federal road.
“The situation became worse after the State Government’s contractor removed the hard core yet the Federal Government’s contractor did not mobilise to site.
“For us, it was an irony that the Federal Government could not do the road, after it allegedly ordered Ikpeazu to stop work,” Okolo said.
He said that the association later approached NNPC Limited to come to its rescue, “since the company is reputed to be building roads in other places”, to no avail.
He said that the prevailing poor road condition to the Aba depot was also being experienced at the Enugu depot.
“So, we see the situation as part of the marginalisation of the South-East.
“We, thetefore, appeal to our political office holders, especially the South-East NASS Caucus to intervene and take up the problem in the two NNPC depots in the zone with the Presidency.
“It is an irony that Abia, which is an oil-producing state, cannot have petroleum products, causing marketers to travel to Port Harcourt, Lagos, Calabar and other areas in search of products,” Okolo said.
He urged the lawmakers to demand that the vandalised pipelines from Port Harcourt to Aba be replaced with new ones to ensure that products were pumped to the Aba and Enugu depots via the pipelines.
“It is possible and doable and it will save us the cost of transporting products by road as well as the huge damage that trucks suffer on the road everyday.
“The Federal Government can lay new pipelines from Port Harcourt to Aba, which is barely 56km-long in the first phase and later extend it to Enugu depot.
Meanwhile, the Federal Controller of Works in Abia, Mr Tony Onwubiko, has dispelled the allegation that the Federal Government abandoned the road leading to the depot.
Onwubiko admitted that most road projects in the country suffered major setback largely due to the lack of funding from the Federal Government.
“The road to the Aba deport is being done by us.
“The contractor is Rodo Construction and the job is now funded by NNPC.
“The contract is going on from the Ekeakpara end, though it is slow because the contractor applied for augmentation,” Onwubiko said.
He said that the project could not make any progress “until NNPC stepped in, took over and paid for it.
He cited the Aba-Ikot Ekpene Dual Carriageway, which also stopped due to the lack of funds until NNPC paid N4.8 billion before work resumed last year.
The federal controller also blamed the sharp increase in the prices of petrol, asphalt per square metre and other materials, following the subsidy removal, for the stoppage of work on many projects in the country.
He also said that the Federal Government’s policy shifting the payment of compensation for lands acquired for road expansion to the states did not help the situation
He said that “the states are not paying the compensation”.
Onwubiko assured the marketers that the road would be completed in no distant time now that it is funded by NNPC. (NAN)
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