Connect with us

BIG STORY

OPEC Says Dangote Refinery’s Diesel, Jet Fuel Supplies To Disrupt Europe’s Oil & Gas Industry 

Published

on

  • It is a big plus to Nigeria’s economy

 

The Organisation of Petroleum Exporting Countries, OPEC, has said supplies from Nigeria-based world’s largest single-train Dangote Refinery and Petrochemicals will put pressure on the performance of Europe’s oil industry, especially the Northwest Europe (NWE) Gasoil.

OPEC in its newly released monthly Oil Market Report for June 2024 listed Dangote Refinery among the top Diesel and jet Fuel suppliers that will disrupt Europe’s oil & gas Industry, a development experts forecasted will positively impact the Nigerian economy.

It would be recalled that Standard & Poor Global quoting trading and the ship tracking sources had earlier predicted that Nigeria’s $20 billion Dangote refinery would shake up international crude flows when it reaches full capacity, having already made an impact since coming online in January, trading sources and ship tracking data show.

The OPEC report revealed that “Upside potential for higher production levels from Nigeria’s Dangote refinery, coupled with strong flows from the Middle East and new supplies from the Mexican Olmeca refinery, will likely exert pressure on NWE gasoil performance in the mid-term.”

It stated further “Europe is one of the world’s largest purchasers of refined petroleum products and relied on imports from Asia and the US after the European Union banned the use of Russian diesel in the bloc.

However, the 650,000bpd capacity refinery which is owned by the Africa’s richest man, Aliko Dangote, is eyeing the wider European market after International Oil Companies stopped supplying its crude oil.

Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin announced the company had earlier exported its first jet fuel cargo to Europe as it rapidly scales production.

The refinery is said to have exported 90 percent of its 3.5 billion litres of jet fuel and diesel to Europe over alleged lack of support from the Nigerian government.

“It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 percent of our production, have been exported,” Edwin said.

BP is currently transporting its first jet fuel cargo to Rotterdam from Dangote, after being awarded part of a 120,000 metric tonnes tender offered for the end of May, according to S&P Global.

OPEC stated that, “In June, the jet/kerosene crack spread in Rotterdam against Brent showed a slight decline, influenced by supply-side dynamics. Despite signs of improving air travel activities, subdued jet fuel demand from the aviation sector weighed on the product market.

“Going forward, European jet/kerosene demand is expected to see upward pressure as consumption levels from the aviation sector continue to pick up in the coming months.”

S&P had noted that Dangote Refinery in its first six months, scaled to 400,000 b/d and delivered diesel, jet fuel, naphtha, and fuel oil to both domestic and export markets, with Gasoline, Nigeria’s primary fuel type, being expected to be produced from mid-August.

Notwithstanding, the refinery has already affected crude flows, with dozens of Nigerian cargoes remaining in-country and US WTI Midland, a comparable light, sweet grade, being imported.

The mega-refinery could therefore tighten the light, sweet crude market. “Its diet is WTI and the lighter Nigerian [crudes] so if you were chasing those barrels you’d probably feel it quite keenly,” a West African crude trader told Commodity Insights. “Once they get to 650,000 b/d without any WTI Midland, ‘severely disrupted’ [will be] the headline.”

WTI Midland crude initially emerged as the favored feedstock to supplement Nigerian supply, with the refinery signing long-term supply contracts for the US grade and noting its competitive pricing. Platyts, part of Commodity Insights, last assessed WTI Midland into Rotterdam at $82.36/b on July 31, while Nigeria’s Bonny Light was assessed at $82.80/b on the same day.

Crude flows in and out of the Dangote refinery have been felt in other markets, especially in Europe, the largest consumer of light, sweet Nigerian crude. The US grade has accounted for 30% of crude delivered to Dangote, through 18 cargoes.

President of Dangote Group, Aliko Dangote said the facility would broaden its feedstock sources with Libyan, Angolan, and Brazilian crude.

“The refinery was built to use Nigerian crude and add value to it within Nigeria. Why should we deviate from that focus?” said Dangote, adding that the crude supply issues were “getting resolved”, but that the refinery remained open to all opportunities “to supplement it”.

“Dangote refinery is designed to process a range of light and medium grades of crude oil, including Nigerian grades,” said Rasool Barouni, Associate Director and head of Refining at S&P Global Commodity Insights. “Other similar grades including other WAF grades could be an option.”

Nigeria is sub-Saharan Africa’s largest oil producer, pumping 1.5 million b/d in June, according to the Platts OPEC Survey from S&P Global Commodity Insights. Until this year, all of its oil was exported due to the lack of refining capacity, with gasoline, diesel, and jet fuel imported for domestic use.

BIG STORY

Why NNPC May Not Lift Dangote Petrol On Sunday — Report

Published

on

Four days before the September 15, 2024, date announced by the Nigerian National Petroleum Company Limited (NNPCL) to start lifting Premium Motor Spirit, popularly called petrol, from the Dangote Refinery, investigations by The Punch show that no commercial agreement has been reached to that effect by both parties.

Multiple sources from NNPC and Dangote confirmed on Tuesday that the two oil firms had yet to reach a deal on the quantity and pricing of PMS to be lifted by the national oil company.

On September 5, 2024, the Executive Vice President of Downstream, NNPC, Adedapo Segun, said during a live television programme that the company would lift Dangote petrol on September 15.

He also outlined factors that would determine the price of the commodity, as he stated that foreign exchange rates and market forces would influence the cost of petrol, stressing that the market had been deregulated.

But on Tuesday, government sources close to the development revealed that no paperwork had been signed by both parties for the lifting of petrol from the $20bn Dangote refinery by NNPC from September 15.

They stated that the terms and conditions required for the deal had not been agreed on, stressing that the national oil company may not lift any petrol from Dangote on the announced date.

When told that September 15, 2024, is around the corner and asked whether plans had been concluded for NNPC to lift Dangote petrol from that day, a senior official at Dangote refinery, who spoke to one of our correspondents in confidence due to lack of authorisation to speak on the matter, said nothing had been agreed on pricing, and petrol lifting, among other things.

“Right now, no documentation from NNPC and NMDPRA (Nigerian Midstream and Downstream Petroleum Regulatory Authority) on product lifting. Nobody has spoken to us that they want to pick up PMS on September 15.

“For you to come and pick products in five days there must be discussions on pricing and other things, which is the commercial engagement. Of course, there must be an offer and other things, the lawyers will structure the terms and conditions,” the source stated.

On how PMS lifting from the Dangote refinery could be, the official replied, “It will be through the same way that products are imported and put in terminals before being lifted by marketers for distribution across the country.”

Another official at the Federal Minister of Petroleum Resources, corroborated the position of the Dangote source, stating that “nothing concrete has been agreed on right now in terms of petrol lifting, but I believe the process is still ongoing.”

A seasoned business adviser to several companies in the upstream, midstream, and downstream oil and gas sectors in Nigeria, Mr Dan Kunle, urged President Bola Tinubu to intervene in the matter.

“The President must act now to address the concerns caused by the issues surrounding the supply of petrol and how this has been fueling the socioeconomic crisis across the country,” he advised.

The spokesperson for the NNPC, Olufemi Soneye, had yet to respond to enquiries on the matter up till when this report was filed on Tuesday night.

  • Refiners React

Also on Tuesday, the Crude Oil Refiners Association of Nigeria said the Dangote refinery petrol might be cheaper if it gets the necessary concessions from the Federal Government.

CORAN’s comment is coming amid fears that the Dangote petrol may be more expensive when released into the market.

The refinery has yet to roll out its petrol a week after it was unveiled by the President of the Dangote Group, Aliko Dangote.

Marketers had expressed fears that the product from the Dangote refinery may be as high as N1,000/litre considering the current landing cost of petrol.

However, speaking in an interview with our correspondent on Tuesday, CORAN Publicity Secretary, Eche Idoko, disclosed that there is no way Dangote’s PMS will be more expensive if the government fulfils its promises.

While saying he was not in a position to determine the price, he stated, “There’s no way his fuel will be too expensive if all the other concessions the government has arranged come to bear. So, if those come to bear, definitely his prices will be cheaper.

“The only thing that will make his products more expensive is if he gets the crude on a higher term. That was all we were crying out for the first time. We must have a special pricing arrangement for local refining like it’s done in other places,” he suggested.

The CORAN spokesman advocated that the committee set up by the Federal Government on naira crude sale to local refineries should come up with a report, while the Nigerian Midstream and Downstream Petroleum Regulatory Authority will guide on prices.

He also requested, “For those of us who are local refiners, we must be able to create a special pricing arrangement for both feedstock and the refined product that will satisfy the Nigerian people.”

The position of the association, he said, is to make sure members break even in business while producing the quality specification that best serves Nigerians and delivering it at a reasonable price that will satisfy Nigerians.

He said the group was planning to meet with Dangote on pricing.

“By the time we interact with Dangote on his pricing arrangement, we will be able to address him where we deem it necessary and then we will also come out and publicly address the press on that. At this instance, we are yet to do that,” he said.

On the back and forth between the Dangote refinery and the Nigerian National Petroleum Company Limited, Idoko said refiners were not surprised.

“We are not surprised at what is happening. Usually, when there is going to be a market shift, the incumbents are bound to react,” he noted.

He stressed that discussions are still ongoing and there is nothing concrete yet.

“Because there is nothing concrete and everything is still based on speculations and bickering from both Dangote and NNPC, we don’t want to take a position until the negotiations are completed, especially with the committee set up by the Federal Government to see to the supply of crude in naira is completed and we are properly briefed, then we can give a position.

“But, by way of summary, our position ultimately will be what would be in the interest of, first, the Nigerian people, and then secondly, we would also throw our weight behind people who are seeking to invest in our economy. Those are the two paramount things.

“We always keep telling the government and telling anybody who cares to listen, that the decisions that have to be reached on local refining shouldn’t be done from the lens of one man alone. Dangote means just one out of many of us.

“So, we want the decision of the government to be palatable to even new entrants. So, in this instance, we want to tell the government to actually look at the broader picture of things and not say, ‘We are doing this because of Dangote’. We are doing it because of new entrants that are coming tomorrow,” he stressed.

According to him, refining locally has its advantage over importing products.

“As Nigerians, we also expect that in the overall pricing, Dangote is going to be circumspect and would look at the interest and purchasing power of Nigerians. Even though we know he’s in the business for gain, we do expect, as the person that he is, that he’s going to look at the interest of Nigerians in arriving at a price.

“We also want to advise NNPC to be very transparent about it and it’s not the time for politics because people are really suffering,” Idoko mentioned.

On the condition of the NNPC that it would only pick Dangote PMS if it is cheaper, Idoko maintained that the intervention of the Federal Government is still being awaited.

“I know if Dangote gets a special arrangement, they will also sell under that special arrangement for that quantity they are going to be refining. So, a lot is still going on right now. And then as an umbrella association, we don’t want to make any statement until we have seen the actual facts.

“But I think whatever you are seeing in the press is the normal thing that happens between the two parties trying to buy. So everything is done to give you a negotiating advantage. And in this case, playing to the people’s sentiments is key.

“But when it comes to pricing, I know that some compromise will be reached sometime, but our position is that whatever the compromise is, it should be in the overriding interest of Nigeria and Nigerians.

“Dangote has not briefed us nor has the committee set up by the Federal Government reverted to us on what had been agreed. We have told them what our intentions are and we have told them what our expectations are and I think Nigerians should just wait patiently for this to be agreed,” he said.

 

Credit: The Punch

Continue Reading

BIG STORY

10,000 New Recruits Ready For Deployment February 2025 — Police

Published

on

The Nigeria Police Force has revealed that the 10,000 newly recruited constables and specialists, currently undergoing training, will be deployed in February 2025.

As part of the Federal Government’s community policing initiative, the recruits will be assigned to their states of origin.

The recruitment process, conducted by the Police Service Commission, was initially met with controversy. In June, the commission released the list of successful applicants, but the police, under Inspector General Kayode Egbetokun, rejected it, citing allegations of corruption and seeking a fresh recruitment process.

The PSC stood by the integrity of the process, leading to a standoff. However, in July, the police accepted the list, and the recruits began their training.

With training underway, the February 2025 deployment will mark the culmination of this recruitment cycle, bolstering community policing efforts nationwide.

Speaking in an interview (with The Punch) on Tuesday, the Force spokesperson, Muyiwa Adejobi, said the recruits’ training was being conducted in 16 police training institutions across the country.

He added that the training commenced on August 10, 2024, for the General Duty cadre, adding that the exercise would last for six months.

Adejobi said the specialist cadre training will commence on 28 September 2024.

He said, “The training is currently being conducted in 16 police training institutions spread across the federation. The training commenced on 10 August 2024 for the General Duty cadre and would last for six months. The specialist cadre will commence training on September 28, 2024.

“This implies that come February 2025, all the successfully trained recruits (both General Duty and Specialist) will be absorbed into mainstream policing and deployed to their various states of origin in line with the community policing scheme of the Federal Government.”

Adejobi also said the ongoing training for the newly recruited constables is guided and conducted through the implementation of a new and robust Training Plan and Curriculum.

He added, “The training plan and curriculum provide for three learning phases, the Basic Training Course, Intermediate Training Course and the Practical Police Duty Course.

“These phases will emphasise the rudiments, fundamentals, core principles and concepts of contemporary policing, suitable for a dynamic society such as our dear country, Nigeria.

“The courses being taught encompass core areas, such as practical beat duty policing, police professional studies, including suspects’ handling and detention, criminal law, emotional intelligence, distress and complaints handling, police ethics and code of conduct, public relations and community policing, fundamental human rights, gender education, firearms handling and shooting range practice, unarmed combat, use of English and French languages, ICT, forensics, general liberal and field studies, amongst others.

“Recruits will also be exposed to relevant areas of law as it relates to policing. These include knowledge of the Constitution of the Federal Republic of Nigeria, 1999; Nigeria Police Act, 2020; Administration of Criminal Justice Act, 2015; Evidence Act, 2011 (as amended); Cybercrime Prevention Act, 2015; Electoral Act 2022, etc.”

Continue Reading

BIG STORY

55-Yr-Old Woman Slumps, Dies While Sharing Testimony In Lagos Church

Published

on

A 55-year-old woman, identified as Ifeoma, tragically passed away on September 8, 2024, after collapsing during Sunday service at a church in the Ejigbo area of Lagos State.

According to reports, Ifeoma had stepped forward to share her testimony around 8:48 am when she suddenly collapsed. Despite prompt medical attention, she died shortly thereafter.

Lagos State Police Command spokesperson, Benjamin Hundeyin, confirmed the incident on Wednesday, stating that Ifeoma was rushed to a nearby hospital where she was pronounced dead.

Eyewitnesses described the scene as Ifeoma sang praises and prepared to share her testimony before suddenly collapsing.

He stated, “The Zonal accountant of the church in Ejigbo came to the station and reported that during testimony hour in the church, while the service was on, Ifeoma came out singing songs to give her testimony when she suddenly slumped.

“She was quickly rushed to a nearby hospital but was referred to the General Hospital in Isolo, where she was confirmed dead.

“Based on the report, detectives were detailed to visit the hospital with the complainant. On getting there, they were told that the husband and family of the deceased had taken the corpse to Anambra State, where she came from for burial.”

Continue Reading


 

Join Us On Facebook

Most Popular