EXCLUSIVE: NNPC Ltd Mobilises 500 Trucks To Lift 25 Million Liters Of PMS From Dangote Refinery

… Raises $100m Letter Of Credit To Settle PMS Obligation To Dangote

… Notifies NMDPRA Of Plans To Stop Petrol Importation From October

In a bid to demonstrate its readiness towards buying petrol from Dangote Refinery Petrochemical Company Ltd from this Sunday, September 15. the Nigerian National Petroleum Company Ltd has mobilised 500 trucks to the facility, THE WHISTLER can authoritatively report.

The truck would enable NNPC Ltd, which is the off-taker for petrol to lift about 25 million liters of petrol from the Dangote Refinery under the naira for crude sale arrangement.

The move would enable the product to be distributed to oil marketers at a price that is competitive for the Nigerian market.

To facilitate the truck-out of petrol from the Dangote Refinery, THE WHISTLER gathered that NNPC Ltd had raised a Letter of Credit for the sum of $100m for payment of the product to Dangote.

A source with knowledge of the deal told THE WHISTLER that the payment of the product in dollars was owing to the fact that the crude, which Dangote had blended for this batch of truck-out from the refinery, was paid for in dollars.

The source said, “In preparation for loading of petrol from Dangote Refinery, the NNPC has mobilised 500 trucks to the facility. The NNPC has also raised LC of $100m and would truck out 25 million liters of petrol. NNPC has also notified the NMDPRA that it will not be importing petroluem products from October if the price is competitive.”

From October 1 this year, the NNPC will commence the supply of about 385,000 barrels per day of crude oil to the Dangote Refinery to be paid for in Naira.

In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira.

Diesel is expected to be sold in Naira by the Dangote Refinery to any interested offtaker, while PMS will only be sold to NNPC for distribution to various oil marketers for now.

All associated regulatory costs from the Nigerian Ports Authority, NIMASA, among others, will also be paid for in Naira.

Findings by THE WHISTLER also revealed that the current arrangement has made the NNPC Ltd to take steps by requesting the Nigerian Midstream, Downstream Petroleum Regulatory Authority to revalidate the production figures ahead of plans by the national oil company to stop placing orders for petrol importation from October.

Based on the forecast for PMS production from domestic refineries, the NMDPRA stated that a total of 389.16 million liters of PMS are expected to be produced in September, while October, November and December this year will have 1.09 billion liters, 1.08 billion liters and 1.45 billion liters respectively.

For January, February, and March 2025, the projected productions are 1.47 billion litres, 1.34 billion liters, and 1.47 billion litres.

It was also gathered that in line with the directive issued during the Coordinating Minister of Economy led Committee meeting where the issue of naira for crude sale was discussed, the NNPC has not placed any petrol import supply orders for the month of October 2024 and onwards.

THE WHISTLER had reported in June that the government agreed to make available 450,000 barrels for local consumption, which will be offered to Nigerian refineries in Naira, with the Dangote Refinery being the initial test.

THE WHISTLER had last week reported that NNPC Ltd had also approved the allocation of 19 cargoes of crude oil to the Dangote Refinery and Petrochemical Company.

Sources had told THE WHISTLER that the NNPC Ltd approved the allocation of six cargoes of crude oil to Dangote Refinery for September, while 13 additional cargoes would be released in October.

Recall that the FEC, under the leadership of President Bola Tinubu had approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira.

This initiative will help reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve availability of petroleum products in the country.

Since then, the implementation committee chaired by the Minister of Finance, Mr Wale Edun and the technical committee have worked intensely with NNPC Ltd and Dangote Refinery to fashion out the details of the modalities for the implementation of the FEC approval

EXCLUSIVE: NNPC Ltd Mobilises 500 Trucks To Lift 25 Million Liters Of PMS From Dangote Refinery is first published on The Whistler Newspaper