THE Dangote Petroleum Refinery has stated that its Premium Motor Spirit, otherwise known as petrol, would be exported if the Nigerian National Petroleum Company Limited (NNPCL) and other petroleum dealers in the country refuse to buy it.
Vice President in charge of Oil and Gas at Dangote Industries Limited, Mr. Devakumar Edwin, who stated this on Monday, September 2, while featuring on a live show, confirmed reports that the refinery has started the production of petrol, adding that local oil traders have resorted to importing diesel and aviation fuel, thereby blocking local sales of Dangote fuel.
According to him: “We have been exporting aviation fuel, we have been producing kerosene, we have been producing diesel, but yesterday, we started the production of PMS. That was the last stage. The only thing now left out is petrochemicals.
“So, the good news for the country is we have started producing PMS from our refinery since yesterday (Sunday).”
Asked if the petrol would be sold locally, Edwin replied: “Well, I explained how there has been a kind of a blockade from lifting our products within the country. The traders have been trying to block (it) and so now we have been exporting our petroleum products. PMS, we are ready to pump in as much as possible to the country.
“But if the traders or NNPCL are not buying the product, obviously we will end up exporting the PMS, as we are doing with the aviation jet and diesel.”
He lamented that the company started facing different challenges it never expected when the refinery was set to commence operations, recalling that the philosophy initially was to add value to the raw materials available in the country.
The Dangote Refinery boss expressed regret that Nigeria is still exporting crude and importing refined petroleum products after over three decades, noting: “The philosophy is to take the crude, and instead of exporting the crude, refine it, add value, export the finished products and supply the finished products locally.
“But unfortunately for us, we started facing challenges with the crude supply. What is happening today is that we are struggling to get the crude. We are now importing the crude from the US, Brazil and other parts of the world.
“So, the whole philosophy has gone upside down. After all these decades, we are exporting crude, importing products. The same thing is continuing.
“We are not getting enough crude allocation and the crude is still being exported. We are forced to import crude from outside. Yes, we are getting some crude locally, but it’s not adequate.”
Regarding the laws governing domestic crude supply obligations, he said: “As per the laws, no crude can be exported, unless all the local refineries requirements are met. That is specified in the Petroleum Industry Act (PIA). But we are struggling to get the crude.”
He said the company has started the construction of four crude tanks of 120 million litres capacity each to store imported crude due to low local supply, adding: “We have to construct the tanks because we are not getting the local crude; we import from overseas, which means we should have enough stocks due to the shipping time.”
He also decried lack of local patronage, despite having a gantry that can load 2,900 tankers per day, saying the refinery has not loaded up to five per cent of the gantry’s capacity due to low local patronage.
He stated: “Go and see our product gantry, we can load 86 tankers at any given time. We can load 2,900 tankers of petroleum products every day, but we are not even loading five per cent, because those who are interested in the trading business feel that probably this local production is going to affect their established interest, so they are not allowing our products to be sold locally.
“They are not coming to lift our products. So, what are we doing? We are exporting the products.
“Yes, the refinery can survive, we can import the crude, we can export petroleum products and we can survive. But is that why he invested in the refinery?”
On the alleged low quality of fuel from the refinery, Edwin assured that Dangote Refinery has the best laboratory in the world, enthusing that no refinery can prove that they have more equipment than the refinery, having adopted what he called the Euro 5 Grade, which is acceptable in Europe and the US.
“Our product can be exported to any part of the world, the best in quality, the lowest in sulphur. In terms of pollution, we have no pollution. So, we are producing the best quality products. That is how we are already exporting our product.
“Our aviation jet fuel has gone to Europe and we are exporting our diesel. So, the refinery has been successfully launched and producing the products,” he enthused.
