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Major Oil Marketers in Talk with Dangote on Ease of Product Distributions

………..by Victor Egbo……………..

Major Oil Marketers Association of Nigeria (MOMAN) are discussing with the management of the Dangote Refinery on how to ease the challenges associated with products distribution.

The Executive of MOMAN Clement Isong said the process has to be done very early to eliminate all possible hiccups that could arise when it is time to pick products.

The very obvious challenges include the high the traffic rate in Lagos State which has affected lots of lives psychometrically and psychologically. These imminent logistics challenges among others are; high traffic at the Lekki Corridor; the strength of the road construction; heavy-duty trucks; air pollution arising from dilapidated trucks emitting hydrocarbons and health hazards arising from pollution and heavy traffic where people will stay hours on the road.

 Isong said that MOMAN has positioned its members to immediately key in into the developments in Dangote Refinery, now that production has started.

The executive secretary said some administrative processes have begun between Dangote Refinery and its members. “I confirm that major marketers are already discussing with and have met with him Dangote, all MOMAN members have registered with Dangote Petroleum Refinery to become marketers of its products. MOMAN would make the product available at their stations the moment it was available for sale.

 “ Whenever the product is ready and starts coming out, you will see it in our filling stations,” he said.

 “I confirm that my members have registered with them. We were waiting for the production to start and now it has started and they will start discussing the commercial terms. So yes, major marketers and other players will buy for the market. The important thing was the registration.

 “So now the commercial terms will be agreed with each marketer and then they will buy from them. There are several ways you can buy from them. They have loading ranks, over 90, so you can take your truck to go and pick. You can also use vessels to pick. Those are the two ways you pick products.”

The seven major oil marketers in Nigeria have registered with the Dangote Petroleum Refinery for the lifting and distribution of refined petroleum products produced by the $20bn plant.

 Depot and Petroleum Marketers Association of Nigeria (DAPPMA) is yet to respond to an inquiry about whether they are talking with Dangote Refinery or not. The managing director of one of the companies under the association when asked what his association is doing to pick products from Dangote Refinery said: I don’t know yet.

He, however, said that on an individual basis there could be arrangements going.

Attempt to get the position of the Independent Petroleum Marketers Association IPMAN, was not successful as those called did not pick up their calls.

 MOMAN comprises seven major marketers including 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc and NNPC Retail.

 The Dangote Petroleum Refinery disclosed the commencement of production of Automotive Gas Oil, also known as diesel, and JetA1 or aviation fuel, early Friday.

The President of the Dangote Group, Aliko Dangote, had in a statement issued by the firm, thanked President Bola Tinubu for his support, encouragement, and thoughtful advice towards the actualisation of the project.

He also thanked the Nigerian National Petroleum Company Limited, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, and Nigerians for their support and belief in the historic project.

“We have started the production of diesel and aviation fuel, and the products will be in the market within this month once we receive regulatory approvals. This is a big day for Nigeria. We are delighted to have reached this significant milestone.

“This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. This is a game changer for our country, and I am very fulfilled with the actualisation of this project,” Dangote stated.

The refinery, located in Lagos, has so far received six million barrels of crude oil at its two SPMs located 25km from the shore. The first crude delivery was done on December 12, 2023, and the 6th cargo was delivered on January 8, 2024.

 The refinery can load 2,900 trucks a day at its truck-loading gantries. The products from the refinery will conform to Euro V specifications, according to the firm.

 “The refinery design complies with the World Bank, US EPA, European emission norms, and Department of Petroleum Resources emission/effluent norms, employing state-of-the-art technology,” the company stated.

 The Dangote Petroleum Refinery and Petrochemical Project, a subsidiary of Dangote Industries Limited, is a 650,000 barrels per day crude oil refinery, located in Dangote Industries Free Zone, Ibeju-Lekki, Lagos, Nigeria.

 Dangote Petroleum Refinery with a capacity to refine 650,000 barrels of crude oil per day covers an area of approximately 2,635 hectares in the Lekki Free Trade Zone in Lagos.

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