Dangote refineries plan supply to150,000 IPMAN stations

The Dangote Petroleum Refinery is to supply fuel to about 150,000 retail outlets operated by the Independent Petroleum Marketers Association of Nigeria following a meeting between the management of the refinery and executives of IPMAN.

Last week Monday, we exclusively reported that IPMAN had scheduled a meeting with the management of Dangote refinery as regards the supply of products to independent marketers.

When contacted on Friday evening to confirm if the meeting was held, the President, IPMAN, Abubakar Maigandi, stated that the association had finally met with the management of the refinery, adding that the latter agreed to supply products to the over 30,000 members of IPMAN.

This came as it was further gathered that the regulator of the downstream oil sector was currently examining the refined products from the refinery before the facility would be given approval to dispense fuel to the market.

We had also reported on Monday that seven major oil marketers in Nigeria had registered with the refinery for the lifting and distribution of refined petroleum products produced by the $20bn plant.

The report stated that dealers under the aegis of the Major Oil Marketers Association of Nigeria confirmed on Sunday that with the registration, they would commence the distribution of fuel produced from the facility once the commercial terms were sorted.

The seven major marketers include 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc and NNPC Retail.

Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria had also stated that PETROAN was engaging the management of the multi-billion dollar refinery for the supply of products from the facility.

On January 12, 2024, the Dangote Petroleum Refinery announced that it had commenced the production of Automotive Gas Oil, popularly called diesel, and JetA1 also known as aviation fuel.

Commenting on the outcome of the meeting between IPMAN and the Dangote refinery during a conversation with our correspondent on Friday, the association’s president said the management of the plant would be supplying products to the 150,000 stations of IPMAN nationwide.

“The meeting went well, so right now we are just expecting their reply in terms of products that they are going to give us. They have agreed to dispense products to IPMAN members,” Maigandi stated.

Asked to state the number of oil marketers that are members of IPMAN, he replied, “We have 30,000 members as of our last census, which was done two years ago. And they agreed to supply products to us. Also, our retail outlets are 150,000 stations across the country.”

Probed further to tell whether every member and station of IPMAN would be able to get supply from Dangote, Maigandi said, “What he (Dangote) is producing is for Nigeria’s consumption. He can supply Nigeria and can export some of the products.

“It is not a small refinery. It is a very big refinery. I was there to see things for myself and it is a massive refinery.”

When told that Dangote promised to get the products to the market in January, and whether this was realistic based, the IPMAN President stated that there was hope.

“There is hope since they have started production. Immediately when they finish production, the next thing is to sell. I can confirm this because I was there myself. And I know immediately he gets approval to sell, he can start selling at any time.

“So it is not a small project. It is a very good thing for Nigeria. They are to start with aviation fuel and diesel. You know that independent petroleum marketers also buy diesel.

“Therefore by God’s grace, our 30,000 members are ready to buy and distribute across the 150,000 retail outlets nationwide. So anywhere you go you will see fuel. The issue of scarcity of fuel will be no more once he (Dangote) starts,” Maigandi stated.

On whether IPMAN discussed pricing with the management of the refinery, he said, “No we didn’t discuss the price, but all that we know is that the price is going to be a little bit lower than what we have been selling.”

The Dangote refinery, located in Lagos, has so far received six million barrels of crude oil at its two SPMs located 25km from the shore. The first crude delivery was done on December 12, 2023, and the 6th cargo was delivered on January 8, 2024.

The refinery can load 2,900 trucks a day at its truck-loading gantries. The products from the refinery will conform to Euro V specifications, according to the firm.

“The refinery design complies with the World Bank, US EPA, European emission norms, and Department of Petroleum Resources emission/effluent norms, employing state-of-the-art technology,” the company had stated in a statement.

The Dangote Petroleum Refinery and Petrochemical Project, a subsidiary of Dangote Industries Limited, is a 650,000 barrels per day crude oil refinery, located in Dangote Industries Free Zone, Ibeju-Lekki, Lagos, Nigeria.

The Dangote Petroleum Refinery is an industrial plant that transforms crude oil into various usable petroleum products such as diesel, gasoline, jet fuel, and kerosene.

Dangote Petroleum Refinery with a capacity to refine 650,000 barrels of crude oil per day covers an area of approximately 2,635 hectares in the Lekki Free Trade Zone in Lagos.

Regulators examine products

Officials of the Federal Ministry of Petroleum Resources said the regulator of the downstream oil sector had been visiting the Dangote Petroleum Refinery to carry out the processes required to issue regulatory approvals before the release of diesel and aviation fuel into the market.

The President of Dangote Group, Aliko Dangote, had stated on Friday that the products would be released to the market after regulatory approvals.

“We have started the production of diesel and aviation fuel, and the products will be in the market within this month once we receive regulatory approvals. 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,” Dangote had stated.

When asked whether the regulatory approvals had been issued to the facility to release products into the market, an official of the petroleum ministry replied in the negative.

The official, who pleaded not to be named due to lack of authorisation, was, however, quick to state that the process was ongoing, as officials from the NMDPRA had been visiting the plant.

“There is no licence yet. But it is in the process because the licence is not just issued like that. There are things that should be done and these things must be completed, and they (regulatory officials) are there right now as we speak.

“The issuance of a licence goes through a process. So we have to go through that process. But it is said that the products are to be in the market before the end of this month and so before it comes to market, it is expected that they would have issued it,” the source stated.

Former President Muhammadu Buhari inaugurated the Dangote refinery in May 2023. The facility missed its crude oil refining target a number of times due to the non-supply of crude to the plant by oil producers.

It, however, started receiving crude oil batches of one million barrels each in December 2023 and got the 6th batch of one million barrels of crude this month. Officials at the plant had explained that the refinery required six million barrels of crude to commence production.

Dangote refinery officials did not answer calls nor responded to text messages when contacted on Friday to comment on the meeting between the company and IPMAN executives.

SOURCE: PUNCH