The Dangote Petroleum Refinery, a monumental $20 billion project, has taken a significant stride towards reshaping Nigeria’s fuel sector. The seven major oil marketers in Nigeria, under the Major Oil Marketers Association of Nigeria (MOMAN), have registered with the Petroleum Refinery for the lifting and distribution of refined petroleum products produced by the state-of-the-art facility.
The major marketers include 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc, and NNPC Retail. With their registration, they are poised to commence the distribution of fuel from the Dangote refinery once commercial terms are finalized.
In addition to MOMAN, the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) are engaging with the Dangote refinery to discuss terms for product loading and supply.
The Dangote Petroleum Refinery recently announced the commencement of production of Automotive Gas Oil (diesel) and JetA1 (aviation fuel). Aliko Dangote, the President of the Dangote Group, expressed gratitude for the support received from various stakeholders, including President Bola Tinubu and regulatory bodies.
The refinery, situated in Lagos, has received six million barrels of crude oil so far and commenced production following the delivery of the first crude batch on December 12, 2023. The facility, covering approximately 2,635 hectares in the Lekki Free Trade Zone, is designed to refine 650,000 barrels of crude oil per day.
Clement Isong, the Executive Secretary/CEO of MOMAN, confirmed that all MOMAN members have registered with the Dangote refinery, expressing excitement about the imminent availability of the refinery’s products in their filling stations.
Meanwhile, IPMAN and PETROAN are set to meet with the refinery’s management this week to finalize terms and discuss modalities for loading and distribution. The development marks a significant milestone in Nigeria’s fuel industry, potentially bringing about changes in pricing and supply dynamics.
Industry experts and stakeholders anticipate that the Dangote refinery’s production will enhance competition, contribute to product availability, and may lead to a reduction in fuel prices for consumers. The refinery’s capacity, adherence to global emission norms, and utilization of advanced technology position it as a game-changer in Nigeria’s oil and gas landscape. As the refinery contributes to local refining efforts, it is expected to boost employment opportunities and reduce the country’s dependence on imported refined products.
The successful operation of the Dangote Petroleum Refinery is seen as a catalyst for similar projects and a significant step towards achieving a more sustainable and self-reliant fuel sector in Nigeria.