- Since its commencement in January 2024, the Dangote refinery has faced several hurdles, including domestic gas supplies and regulatory disputes.
- NUPRC pledged to enhance the domestic crude supply and gas delivery obligation for Nigeria’s energy security.
The Nigerian National Petroleum Company (NNPC) Limited has expressed its support for the Dangote refinery and all other refineries in the country to ensure they have sufficient feedstock for their operations.
The Group Chief Executive Officer NNPC Limited, Mele Kyari, stated this at the Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) 2024, which began on Tuesday, August 6, 2024, in Lagos with the theme: “Petroleum Industry Value Chain Optimisation: The Inevitability of Midstream and Downstream Development.”
He emphasised that NNPC Ltd was making every effort to ensure that the refineries owned by energy companies were coming into operation to improve the country’s domestic supply of petroleum products.
This comes after contentions as the Nigeria’s upstream regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), contested the sulphur content in Dangote’s gasoil, stating it exceeded the permissible limit of 200 parts per million (ppm).
However, Aliko Dangote, the chairman of Dangote Group, refuted these claims, explaining that while the sulphur levels were initially high, they have since decreased to 88 ppm, with the expectation that they will reach 10 ppm by early August as production scales up.
The NNPC Group CEO added, “We also continue to support other efforts, including the Dangote refinery and very many other smaller refineries that are coming. And we have a duty to support all this. That’s why we’re at the forefront of supporting these businesses to make sure that they function and they deliver value to our country.”
During the event, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also committed to enhancing the Domestic Crude Supply Obligation (DCSO) and the Domestic Gas Delivery Obligation to ensure the country’s domestic energy security.
NUPRC’s Chief Executive, Mr Gbenga Komolafe, represented by the Executive Commissioner, Development and Production, Enorense Amadasu, Komolafe stated that the commission is fostering collaboration with its sister agency, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other key stakeholders to enhance end-to-end value in critical operational areas.
In addition, he also disclosed that the NUPRC is implementing the Upstream Asset Divestment Framework to facilitate the seamless and non-disruptive exit of divesting entities and to promote sustainable operations for the acquiring parties.
“We are committed to entrenching collaboration for enhanced value to the industry and the nation at large, as we deliberate on the strategies and innovative approaches that will prepare the industry forward, let us remember that the optimisation of the midstream and downstream segments is not merely an option but inevitability.
“By focusing on this area, we can mitigate the risks associated with market volatility, enhance the refining capacities, and ensure a more stable and efficient energy security for our nation in the world undergoing change”, Komolafe added.
In addition, the NUPRC chief executive reiterated the importance of conscious action to mitigate the impact of energy transition and position the nation for a decarbonised world.
He stressed that the world is on the energy transition course irrespective of individual views, adding that the dividend of the in-country value from the oil and gas resources through a midstream and downstream operation is highly imperative.