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Yuletide: Dangote, Marketers Finalize Supply Deal, PH Refinery Taps Dubai Market

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2 months ago

Dec 7, 2024.

The Petroleum Products Retail Outlets Owners Association (PETROAN) has reached an agreement with the Dangote Refinery to lift petroleum products directly, ensuring seamless distribution across depots and retail outlets during the yuletide season.

This development was confirmed in a statement by PETROAN’s National Public Relations Officer, Dr. Joseph Obele, on Saturday.

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EKO HOT BLOG reports that he revealed that the agreement, finalized during a meeting with Dangote Refinery officials on December 2, 2024, guarantees the availability of fuel for the festive period.

Obele disclosed that the negotiation included a reserved monthly product volume, payment modalities, and favorable pricing for PETROAN members.

“The national headquarters of PETROAN expresses confidence that the measures in place will avert fuel supply shortages during and after the festive season,” the statement read. The association also urged the public to avoid panic buying, assuring stakeholders that its collaboration with Dangote Refinery would sustain petroleum supply.

Meanwhile, the newly refurbished Port Harcourt Refining Company (PHRC) has commenced exporting refined petroleum products, with its first shipment of low-sulphur straight-run fuel oil headed to Dubai-based Gulf Transport and Trading Limited. The facility, operating at 70% of its 60,000 barrels per day (bpd) capacity, began production on November 26, 2024, following extensive renovations.

Industry analysts have noted the significance of the PHRC’s operations, stating that its production could reduce Nigeria’s reliance on imported refined petroleum products and impact regional fuel supply dynamics. However, concerns remain about the refinery’s full output capacity and its ability to meet domestic demand consistently.

Reports indicate that PHRC’s initial export shipment comprises 15,000 metric tonnes (approximately 13.6 million liters) of low-sulphur fuel oil, sold at a discount to the European benchmark. Experts anticipate that the refinery’s operations will stabilize by 2025, potentially reaching full capacity by 2026.

Efforts to obtain comments from the Nigerian National Petroleum Company Limited (NNPCL) regarding the refinery’s developments were unsuccessful, as spokesperson Femi Soneye did not respond to inquiries.

Yuletide: Dangote, PETROAN Strike Fuel Supply Deal, PH Refinery Exports To Dubai

These initiatives by PETROAN and NNPCL aim to address fuel supply challenges and maintain stability during the festive period, bolstering public confidence in the downstream sector.