Dangote Refinery Set to Receive Official Operational Permit

FILE PHOTO: A view of the newly-commissioned Dangote Petroleum refinery is pictured in Ibeju-Lekki, Lagos, Nigeria May 22, 2023. REUTERS/Temilade Adelaja/File Photo

The Federal Government said on Tuesday that it would award a completely legal operating licence to the Dangote Petroleum Refinery, which has a capacity of 650,000 barrels per day.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority held a Stakeholders’ Consultation Forum in Abuja to discuss Midstream and Petroleum Host Community Development Trust Regulations.

The NMDPRA, a Federal Government body, indicated that, while it had granted a pre-commissioning licence to the $20 billion refinery, a completely legal operating licence would be handed to the Dangote refinery shortly.

Former President Muhammadu Buhari opened the Dangote refinery in May 2023. The facility began delivering Automotive Gas Oil, also known as diesel, to the domestic market in April of this year. It has yet to release Premium Motor Spirit, often known as petrol.

Farouk Ahmed, Chief Executive of NMDPRA, informed industry players and other stakeholders at an event in Abuja on Tuesday that the authority would award the refinery a completely legal operating licence very soon.

Ahmed, who was represented by NMDPRA’s Executive Director, Distribution Systems, Storage, and Retailing Infrastructure, Ogbugo Ukoha, stated that just three refineries now hold valid licenses.

“We have issued three refineries with three valid licences. We awarded to Dangote refinery even in their pre-commissioning and sooner than later they will have full commission and a valid licence to also operate,” he stated.

He also noted that approximately 15 gas facilities across the country had legal licences, with others being processed.

According to the NMDPRA’s CEO, there are 1,199 downstream facilities with valid licenses, and more than 176 businesses hold gas import permits.

Ahmed stated that 130 depots have valid licences, while 69 have valid coastal vessel permits, and that the NMDPRA has licensed 9,464 retail outlets as of 10 a.m. on April 30, 2024.

“In the gas processing facility within the midstream, there are about 15 of them with valid licences. And much is under processing.  If you go to the downstream sector, in the gas state of the downstream, more than 1,199 facilities have NMDPRA valid licences.

“More than 176 operators hold gas import permits. In the liquid licensing side of the downstream, there are 130 depots with valid licences and coastal vessels of more than 69 valid licences as of today. And in the retail outlets, we have 9,464 licensed retail outlets as of 10 am today, April 30,” Ahmed stated.

He stated why places in the oil industry’s midstream and downstream arms were classified as host communities, citing the impact of emissions and effluence.

Ahmed stated that the authority organized the meeting for stakeholders to share their opinions and propose solutions that would help the NMDPRA better relate to host communities in the mid and downstream arms of the oil sector.


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