Olufemi Adeyemi
The quality of petroleum products produced by Dangote Refinery has been called into question by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
It has come to the attention of the Nigerian Midstream and
Downstream Petroleum Regulatory Authority (NMDPRA) that the quality of
petroleum products sourced from the Dangote refinery, as well as those from
Watersmith, Aradel, and other modular refineries, does not meet the standards
of imported petroleum products.
The Chief Executive Officer of the NMDPRA, Farouk Ahmed,
revealed this in a recent interview with journalists. The interview was
published by TVC.
The regulatory authority firmly denied allegations
suggesting that certain entities within the oil and gas industry were
attempting to obstruct the development of the Dangote Refinery project.
As per his statement, the operational license for the
650,000 barrel-per-day refinery has not been granted by the Nigerian Midstream
and Downstream Petroleum Regulatory Authority (NMDPRA).
He noted that the Dangote Refinery, situated in Lagos, is
currently undergoing pre-commissioning activities and has achieved
approximately 45% completion.
Mr. Ahmed emphasized the potential risks associated with
relying solely on the Dangote Refinery for the supply of petroleum products,
particularly Automotive Gas Oil and Dual Purpose Kerosene (DPK). He cautioned
against the suspension of these products, highlighting the importance of
maintaining a diversified supply chain to ensure energy security and mitigate
potential disruptions.
He said: “That is not so. Dangote Refinery is still in the
pre-commissioning stage. It has not been licenced yet. We haven’t licenced 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.”
In reference to quality standards, he said that Dangote’s
current AGO (diesel) falls below the required specifications set by West
Africa. Specifically, the sulphur content exceeds the acceptable limit of 50
parts per million (PPM).
“Dangote Refinery, as well as some modular refineries like
Watersmith Refinery and Aradel Refinery, are producing between 650 and 1,200
PPM. Therefore, in terms of quality, their products are inferior to imported
ones,” he stated.
This update comes a few days after Aliko Dangote, the
Chairman of Dangote Group, announced that Dangote Refinery is scheduled to
start fuel supply in August 2024.
Prior to this, Devakumar Edwin, the Vice President of
Dangote Industries Limited, claimed that a majority of fuel products brought
into Nigeria are of inferior quality.
He further pointed fingers at international oil companies
for hindering the commencement of the Dangote Refinery by selling crude oil at
inflated prices in Nigeria.
Nevertheless, the Nigerian Upstream Petroleum Regulatory
Commission refuted Edwin's allegations regarding substandard petroleum products
in the country.