*Moves to stop petrol import by October
*Scotland’s only refinery to shut down as competition heightens• Lagos promises free flow of traffic along Lekki-Ajah corridor
The Nigerian National Petroleum Company Limited (NNPCL) has deployed over 100 trucks, lighter vessels and personnel to the Dangote Refinery in Lagos for the lifting of petrol from the 650,000 barrels per day facility from today, the Chief Corporate Communications Officer (CCCO) of the state-owned oil company, Mr. Olufemi Soneye, has said.NNPC has also notified the Nigerian Upstream and Downstream Petroleum Regulatory Authority (NMDPRA) that it would not be importing petroleum products from October if the price is competitive.
This is just as the Lagos State Government has promised a comprehensive traffic management strategy to guarantee the free flow of traffic along the Lekki-Ajah corridor ahead of the refinery’s commencement of lifting of refined petrol to outlets.Dangote Refinery may have also recorded its casualty as Grangemouth, Scotland’s only refinery, is to shut down in 2025 with the loss of 400 jobs, as competition tightens.Soneye told THISDAY yesterday that the NNPCL’s trucks and personnel were on ground to transport the products.“In preparation for the Dangote Refinery’s scheduled petrol loading on Sunday, September 15, 2024, NNPC Limited has been mobilising trucks to the refinery’s fuel loading gantry in Ibeju-Lekki. As of Saturday afternoon, NNPC Limited had deployed over 100 trucks, with hundreds more en route,” he stated.“Our trucks and personnel are on-site, ready to transport the product,” Soneye added.
Quoting sources privy to the deal, The Whistler reported that: “NNPC has also notified the Nigerian Upstream and Downstream Petroleum Regulatory Authority (NMDPRA) that it would not be importing petroleum products from October if the price is competitive.”According to the report, the NNPC would from October 1 commence the supply of about 385,000 barrels per day of crude oil to the refinery, which will be paid for in naira.As part of the agreement, the refinery would supply petrol and diesel of equivalent value to the domestic market, also to be paid in Naira.However, diesel is expected to be sold in naira by the refinery to any interested off-taker, while petrol will only be sold to NNPC for distribution to various oil marketers.The NMDPRA is further expected to revalidate the production figures ahead of plans by the national oil company to stop placing orders for petrol importation from October.Based on this forecast for petrol from domestic refineries, the NMDPRA was said to have stated that a total of 389.16 million litres of petrol will be produced in September.However, in October, November and December this year, the country is expected to produce 1.09 billion litres, 1.08 billion litres and 1.45 billion litres respectively.
For January, February, and March 2025, it was learnt that the projected productions are 1.47 billion litres, 1.34 billion litres, and 1.47 billion litres.It was gathered that the NNPC has not placed any petrol import supply orders for October 2024.The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr Zach Adedeji had announced on Friday that NNPC would begin lifting petrol from the $20 billion refinery on September 15, with an initial 25 million litres per day.As part of the resolution, Adedeji said NNPC would be the sole off-taker of petrol from Dangote Refinery while diesel from the facility would be sold directly to any interested marketer.While crude supplied to Dangote Refinery would be paid in naira, the FIRS boss added that both petrol and diesel from the refinery as well as all costs associated with the transactions would also be paid in the local currency.
Lagos Promises Free Flow along Lekki-Ajah Corridor
Meanwhile, the Lagos State Government said it has devised a comprehensive traffic management strategy to guarantee free traffic flow along the Lekki-Ajah corridor ahead of the refinery’s commencement of the distribution of refined petrol to outlets.The Special Adviser to Governor Babajide Sanwo-Olu on Transportation, Sola Giwa, made this known in a statement issued yesterday to reaffirm the state government’s commitment to safeguarding citizens’ welfare and maintaining orderly traffic.He confirmed that the Lagos State Traffic Management Authority (LASTMA) had been fortified with state-of-the-art equipment and trained personnel to be strategically deployed to oversee and regulate traffic flow within the affected areas.Giwa promised the residents and commuters in the Lekki-Ajah vicinity that thorough preparations had been made, urging them to remain calm and confident in the state government’s capabilities.
The statement added: “In collaboration with relevant stakeholders, LASTMA has mobilised advanced tow trucks and emergency response equipment to promptly address anticipated potential traffic disruptions. Medical ambulance services are also on high alert to ensure rapid response in emergencies.“As the Dangote Refinery commences operations, the Lagos State Government emphasised the imperative of strict adherence to traffic regulations by tanker operators, particularly during loading and navigation within the Lekki-Ajah axis. The state government will rigorously enforce these regulations to avert traffic disruptions and ensure seamless vehicular movement.“The Lagos State Government reaffirms its commitment to safeguarding citizens’ welfare and maintaining orderly traffic during this pivotal period of industrial activity.“All motoring public, particularly commercial bus operators including mini-bus drivers, are hereby cautioned to comply with traffic laws, refraining from picking up or dropping passengers at undesignated bus stops, avoiding driving against traffic (One-way drive) and observe all road signs including traffic signals, among other regulations.“Adherence to these regulations will ensure a harmonious and efficient transportation system,” the statement added.
Scotland’s Only Refinery to Shut down as Competition Heightens
In a related development, Dangote Refinery may have claimed a casualty as Grangemouth, Scotland’s only oil refinery, is to shut down in 2025 with the loss of 400 jobs, as competition tightens.The refinery’s operator, Petroineos, said the refinery was increasingly unable to compete with bigger, more modern and efficient plants in the Middle East, Asia and Africa.Petroineos added that the 100-year-old plant will be turned into a fuel import terminal.Quoting the company’s spokesman, Reuters reported that production will cease in the second quarter of next year, subject to an employee consultation.Petroineos is a joint venture between PetroChina International London (PCIL) and INEOS Group, a British chemicals firm founded by billionaire Sir Jim Ratcliffe.The company cited economic difficulties as the reason for the closure, stating that the company had invested $1.2 billion since 2011, and returned losses above $775 million over the same period.
“Grangemouth is increasingly unable to compete with bigger, more modern and efficient sites in the Middle East, Asia and Africa. Due to its size and configuration, Grangemouth incurs high levels of capital expenditure each year just to maintain its licence to operate,” Reuters quoted the company as saying.It said the plant is currently losing around $500,000 per day, and expects to see a $200 million loss for 2024.Chief Executive of Petroineos Refining, Frank Demay, added: “With a ban on new petrol and diesel cars due to come into force within the next decade, we foresee that the market for those fuels will shrink further.”
THISDAY
