Nigeria’s Dangote oil refinery started supplying petroleum products to the local market on Tuesday, a company executive and fuel marketing associations said, a major step in the country’s quest for energy independence.
According to Reuters, Dangote’s group executive, Devakumar Edwin, confirmed shipping of diesel and jet fuel into the local market.
“We have substantial quantities. Products are being evacuated both by sea and road. Ships are lining up one after another to load diesel and aviation jet fuel.”
“Ships load a minimum of 26 million litres, though we try to push for 37 million litres vessels, for ease of operations,” Edwin told Reuters.
Speaking on the sale of diesel into the local market, Abubakar Maigandi, the president of the Independent Marketers Association of Nigeria (IPMAN), said the local oil marketers agreed on a price of 1,225 naira ($0.96) per litre of diesel following a bulk purchase agreement, before putting their mark-up.
Similarly, another marketers’ group, the Depots and Petroleum Products Marketers Association of Nigeria said its members were seeking letters of credit to buy petroleum products from Dangote.
“Our members are discussing with banks and these talks have reached advanced stages, when we have our letters of credit, we will begin lifting products,” Femi Adewole, the association’s executive Secretary, was quoted as saying.
The 650,000 barrels per day (bpd) Dangote Petroleum Refinery had earlier in January commenced production of diesel and aviation fuel.
