Dangote refinery not yet licensed – NMDPRA
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has disclosed that the 650,000 bpd Dangote refinery has not been licensed. Chief Executive of the authority, Farouk Ahmed spoke with newsmen in Abuja against the backdrop of alleged scuttling of the operations of the refinery by the International Oil Companies. Ahmed dismissed the claim even […]
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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has disclosed that the 650,000 bpd Dangote refinery has not been licensed.
Chief Executive of the authority, Farouk Ahmed spoke with newsmen in Abuja against the backdrop of alleged scuttling of the operations of the refinery by the International Oil Companies.
Ahmed dismissed the claim even as he stated that Dangote petroleum products were inferior to the ones being imported.
He said, “Dangote Refinery is still in the pre-commissioning stage. It has not been licensed yet. We haven’t licensed them yet. I think they are about 45 per cent to completion.
“We cannot rely on one refinery to feed the nation because Dangote is requesting that we suspend or stop imports, especially of AGO and DPK, and direct all marketers to his refinery.
“That is not good for the nation in terms of energy security, and it is not good for the market because of the monopoly,” he said.
He further stated, “On the quality, Dangote’s current AGO (diesel) suffers from the lowest quality in terms of sulfur content, falling short of West Africa’s requirement of 50 parts per million (PPM).
“Dangote Refinery, as well as some modular refineries like Watersmith refinery and Aradel refinery are producing between 650 to one 1,200 PPM. Therefore, in terms of quality, their products are inferior to imported ones,” he added”.
There was no official response from the management of Dangote Refinery as at press time.
However, it would be recalled that the management of Dangote Refinery had accused the IOCs of sabotaging the company.
It also stated on Wednesday that local petrol prices would continue to increase as trading arms offer cargoes at $2-$4 per barrel above the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) official price.
Vice President of Oil & Gas, Dangote Industries Limited, Mr Devakumar Edwin stated this while responding to a statement by the Chief Executive Officer of NUPRC, Engr. Gbenga Komolafe, in an interview on ARISE News TV where he said: “it is erroneous for one to say that the International Oil Companies (IOCs) are refusing to make crude oil available to domestic refiners, as the Petroleum Industry Act (PIA) has a stipulation that calls for a willing buyer-willing seller relationship.”
The company’s management had equally decried how the NMDPRA continues to grant licences to import banned dirty diesel, jet fuel, accusing the lOCs in Nigeria of doing everything to frustrate the survival of Dangote Oil Refinery and Petrochemicals.
Edwin said the IOCs were deliberately and willfully frustrating the refinery’s efforts to buy local crude by jerking up high premium price above the market price, thereby forcing it to import crude from countries as far as United States, with its attendant high costs.
The management of Dangote refinery further stated that indiscriminate granting of licences to marketers to import dirty refined products into the country could not encourage local refiners.
The Dangote Vice-President said, “the federal government issued 25 licences to build refineries and we are the only one that delivered on the promise. In effect, we deserve every support from the government. It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported. We are calling on the federal government and regulators to give us the necessary support in order to create jobs and prosperity for the nation.”
On the sulphur content in Dangote’s refined AGO and ATK, Dangote had recently dismissed the claim, saying its products are of high quality.
A statement signed and issued by Anthony Chiejina, the company’s spokesperson, made available to newsmen, said, “publications indicating that we are producing high sulphur diesel are mischievous and designed to tarnish the image of our reputable organisation.”
Chiejina added that, “the false and misleading allegations made by some media outlets that the Dangote Refinery is producing substandard diesel which is why it reduced the price by 37 per cent, is baseless and mischievous.
“Until late last year, diesel imports into Nigeria were up to 7,000 parts per million (ppm) of sulphur which has been going on for many years. Our diesel is produced currently at significantly lower levels of sulphur; as such, we find baseless the allegation that the reason for reduction is linked to quality. What we are producing is 80% better than what is being imported into the country.
“Another inaccurate assertion is that medium-level sulphur diesel is meant for off-road use. This is a completely false statement as this would have invariably meant that all the imports for the last 20 years have been damaging equipment.
“Thirdly, diesel imports for the high sulphur grade have been at significantly higher prices until we started operation. If indeed high sulphur diesel is sold at lower prices, how come we never saw the lower prices until now?”