- The NMDPRA CEO stated that the Dangote Refinery has not yet been licensed and is still in the pre-commissioning stage
- The NMDPRA CEO claimed that Dangote’s current AGO has the lowest quality in terms of sulfur content, making its products inferior to imported ones
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that the 650,000 barrels per day (bpd) Dangote Refinery has not yet been licensed. Speaking with newsmen in Abuja, the authority’s Chief Executive, Farouk Ahmed, dismissed allegations that International Oil Companies (IOCs) were sabotaging the refinery’s operations. He also commented on the quality of Dangote’s petroleum products, stating they were inferior to imported ones.
Ahmed clarified, “Dangote Refinery is still in the pre-commissioning stage and has not been licensed yet. Currently, it is about 45 percent complete. We cannot rely on one refinery to feed the nation, especially since Dangote requests that we suspend or stop AGO (diesel) and DPK (kerosene) imports and direct all marketers to his refinery. This is not good for the nation’s energy security and market competitiveness due to the potential for monopoly.”
He added, “Dangote’s current AGO has the lowest quality in terms of sulfur content, not meeting West Africa’s requirement of 50 parts per million (PPM). The refinery and some modular refineries like Watersmith and Aradel produce between 650 to 1,200 PPM, making their products inferior to imported ones.”
As of press time, Dangote Refinery’s management had no official response. However, the company has previously accused the IOCs of sabotage and expressed concerns over local petrol prices increasing due to trading arms offering cargoes at $2-$4 per barrel above the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) official price.
Dangote Industries Limited’s Vice President of Oil & Gas, Devakumar Edwin, criticized the NUPRC’s stance: “It is erroneous to claim that IOCs are not making crude oil available to domestic refiners. The Petroleum Industry Act (PIA) stipulates a willing buyer-willing seller relationship.” He also decried the NMDPRA’s continued issuance of licenses to import banned dirty diesel and jet fuel, alleging efforts to frustrate Dangote Refinery’s survival by forcing it to import crude at higher costs from distant countries like the United States.
The refinery management emphasized the need for government support, noting that Dangote was the only one of 25 licensed refineries to deliver on its promise. Edwin urged the federal government and regulators to provide the necessary support to create jobs and prosperity for the nation.
Regarding the sulfur content in its products, Dangote Refinery recently refuted claims of producing substandard diesel. A statement by Anthony Chiejina, the company’s spokesperson, asserted, “Publications indicating we produce high sulfur diesel are mischievous and designed to tarnish our image. Our diesel is produced at significantly lower sulfur levels than what was imported into Nigeria until late last year.”
Chiejina further clarified, “The false allegations that we reduced prices due to quality issues are baseless. Our diesel is 80% better than the high sulfur imports previously brought into the country. Additionally, claims that medium-level sulfur diesel is only for off-road use are completely false.”
Chiejina concluded, “Diesel imports with high sulfur content have been sold at higher prices until we started operations. If high sulfur diesel was cheaper, why didn’t we see lower prices before?”
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