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Sunday, July 21, 2024

Dangote defies NMDPRA and tests diesel in presence of federal lawmakers

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Dangote Group Chairman Aliko Dangote on Saturday said that products refined at the Dangote Petroleum and Petrochemicals Refinery, the world's largest single-train refinery, are of superior quality compared to their imported counterparts and meet international standards.

A statement by the Dangote Group on Sunday said the billionaire businessman made the comment after the House leadership insisted on testing other diesel products, alongside Dangote's diesel at the refinery's state-of-the-art laboratory.

The statement further read: “During a tour of the Dangote Oil Refinery and Dangote Fertiliser Limited complex by members of the House of Representatives, the Speaker of the House of Representatives, Tajudeen Abbas and other members who observed the testing of automotive gas oil (diesel) at two filling stations adjacent to the Dangote Oil Refinery, commended the company for its significant investments and contributions to the development of Nigeria.

Speaker of the House, Abbas Tajudeen. [PHOTO CREDIT: Official X handle of the House of Reps | https://x.com/HouseNGR/status/1730676002588664224?s=20]

“The visiting lawmakers obtained diesel samples from two known filling stations near Eleko junction along the Lekki Epe Expressway.

“The Chairman of the House Committee on Downstream, Ikenga Ugochinyere, and the Chairman of the House Committee on Midstream, Okojie Odianosen, supervised the collection of samples from the mild hydraulic cracking (MHC) unit of the Dangote refinery to analyse all the samples.

“Laboratory tests revealed that Dangote’s diesel had a sulphur content of 87.6 ppm (parts per million), while the other two samples showed sulphur levels above 1,800 ppm and 2,000 ppm respectively.

“Dangote stressed that these findings debunk claims made by Farouk Ahmed, the Chief Executive Officer of Nigeria’s Midstream and Downstream Petroleum Authority, who recently claimed that imported diesel outperforms domestic refined products. Ahmed had alleged that the Dangote refinery and other modular refineries such as Waltersmith and Aradel produced diesel with sulphur content ranging from 650 to 1,200 ppm, a statement criticised by many Nigerians as a tactic to favour imported products over local ones.

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“Dangote openly challenged the regulator to compare the quality of refined products from his refinery with those imported, advocating for an impartial assessment to determine what best serves the interests of Nigerians.

“We produce the best diesel in Nigeria. It is disheartening that instead of protecting the market, the regulator is undermining it. Our doors are open for the regulator to test our products at any time; transparency is paramount to us. It would be beneficial for the regulator to showcase its laboratory to the world so that Nigerians can compare. Our interest is Nigeria first and foremost because if Nigeria does not grow, we have limited capacity to do so.

“Honourable Chairman and esteemed members, you have witnessed the results of the credibility test. I appreciate your wise advice in obtaining samples from the filling stations along with the product from our refinery. Ours shows a sulphur content of 87.6 ppm, about 88, while the others were above 1,800 ppm. Although the NMDPRA allows local refineries to produce diesel with a sulphur content of up to 650 ppm until January 2025, as approved by ECOWAS, ours is significantly lower. Next week, we are targeting to reach 10 ppm, aligning with the Euro V standard. Imported diesel is limited to 50 ppm, but as you have seen, the one from the filling stations, imported by major traders, is way below this standard.”

“Dangote noted that high-sulphur diesel regularly imported into the country often comes with dubious certifications. He stressed that the most effective method of verifying quality is to buy the product directly from filling stations and conduct credibility tests. According to him, this problem has led to health risks and economic losses for Nigerians.

“Importation of high-sulphur diesel into Nigeria is often accompanied by dubious certifications, causing health risks and economic losses to Nigerians,” Dangote said. “The best way to check this is to buy the product directly from the filling stations where it is obtained by the end users. I think Farouk Ahmed is speaking without having sufficient knowledge of our refinery. We have exported diesel and jet fuel to Europe and Asia without any complaints; in fact, we have received repeat orders, which indicates satisfaction with our products.”

In support of Dangote’s claim, Dangote Industries Limited Vice President, Oil and Gas, Devakumar Edwin, highlighted recent actions by European countries such as Belgium and the Netherlands. “These countries have expressed concern over the carcinogenic effects of high-sulphur diesel being dumped into the Nigerian market, prompting them to impose bans on exports of the fuel to West Africa.”

Devakumar Edwin, Vice President, Oil & Gas, Dangote Industries Limited [PHOTO CREDIT @Dangote Industries Limited]Mr. Edwin informed federal lawmakers that the Dangote oil refinery is designed to process a wide range of crudes, including several African and Middle Eastern crudes, as well as light shale oil from the US, and meets Euro V specifications.

In addition, he said, it is designed to meet US EPA regulations, European emissions standards, Department of Petroleum Resources (DPR) emissions/effluent standards and African Refiners and Distributors Association (ARDA) standards.

Noting that the products from the $20 billion facility are of high quality and meet international standards, Edwin said it has the capacity to meet 100% of Nigeria’s demand for gasoline, diesel, kerosene and jet fuel, with surpluses available for export.

The group's vice-president, Olakunle Alake, expressed disappointment over the monopoly allegations against the Dangote group. He stressed that there are multiple players in the industry, including the Nigerian National Petroleum Corporation (NNPC), which operates four refineries.

NNPC Limited.

President Abass, while expressing concern over the controversy surrounding the quality of refined products imported into Nigeria, said the Green Chamber would set up a committee to investigate the matter thoroughly. He stressed that as part of this initiative, products from various sources would be tested.

The President also expressed admiration for the Dangote Oil Refinery infrastructure, describing it as a major asset in Nigeria’s quest for self-sufficiency in petroleum products. He noted that the refinery has positioned itself as a pivotal player, especially at a time when global concerns about energy security and sustainability are paramount.

“Today’s visit to the magnificent facilities of the oil refinery section of Dangote Industries has been very enriching. It has given us a unique opportunity to witness first-hand the monumental strides your organisation has made in transforming the oil production landscape in Nigeria. The scale and sophistication of these facilities is impressive; they stand as a beacon of hope for our country as we navigate the turbulent waters of energy supply challenges,” he said.

Praising the cutting-edge technology implemented at the oil refinery, Mr. Abbas hailed it as revolutionary and a shining example of engineering excellence and innovation.

“Every corner of this facility resonates with the echoes of hard work, dedication and the unwavering pursuit of quality. It is evident that every drop produced here carries not only oil, but also the hopes and dreams of millions of people yearning for a better future. We are deeply impressed by what we have seen during this visit, which confirms the industry’s ranking as the largest oil refinery in Africa. This remarkable achievement does not just reflect corporate success; it symbolises national pride, a tribute to what can be achieved when visionary leadership is combined with tireless determination,” he said.

Acknowledging the numerous challenges likely to have been faced during the construction of the refinery, the President commended Dangote for his steadfast commitment to achieving excellence.

“I want to take this opportunity to acknowledge the myriad challenges that have beset this remarkable facility. The regulatory hurdles that often loom like dark clouds over progress, the complexities surrounding crude oil supplies that can stifle even the most ambitious efforts, and the daunting economic landscape we are experiencing, especially in these times when our economy is grappling with foreign exchange restrictions, are all formidable adversaries. Yet, despite these tribulations, your unwavering commitment to excellence shines through,” he said.

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