{"id":3238,"date":"2024-11-23T13:10:39","date_gmt":"2024-11-23T13:10:39","guid":{"rendered":"https:\/\/beadysword.com.ng\/blog\/?p=3238"},"modified":"2024-11-23T13:10:59","modified_gmt":"2024-11-23T13:10:59","slug":"fuel-scarcity-looms-as-dangote-accuses-nnpcl-for-not-supplying-enough","status":"publish","type":"post","link":"https:\/\/beadysword.com.ng\/blog\/2024\/11\/23\/fuel-scarcity-looms-as-dangote-accuses-nnpcl-for-not-supplying-enough\/","title":{"rendered":"Fuel Scarcity Looms As Dangote Accuses NNPCL For Not Supplying Enough"},"content":{"rendered":"
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The Dangote Petroleum Refinery has revealed that the Federal Government is falling short of its commitment to supply crude oil under the naira-for-crude initiative.<\/h2>\n

According to Dangote Industries Limited Vice President, Devakumar Edwin, the refinery has received only a fraction of the agreed volume of crude oil from the\u00a0Nigerian National Petroleum Company Limited (NNPCL) which is insufficient to boost refined product output.<\/p>\n

Edwin disclosed in a Reuters report that the NNPCL had pledged to supply at least 385,000 barrels per day (bpd) since the program\u2019s launch in October.<\/p>\n

However, the deliveries have been significantly below that target.<\/p>\n

\u201cWe need 650,000 bpd. NNPCL agreed to give a minimum of 385,000 bpd, but they are not even delivering that<\/em>,\u201d he stated.<\/p>\n

The naira-for-crude initiative, introduced in July, was intended to ease foreign currency pressures by allowing local refineries to purchase crude oil in naira.<\/p>\n

Despite this arrangement, industry insiders told The PUNCH that while four crude oil shipments have been delivered to the Dangote refinery, further deliveries are still pending.<\/p>\n

Less than two months into the program, the refinery is reportedly considering alternative crude supply options, including imports from the United States.<\/p>\n

On Wednesday, the facility procured two million barrels of US WTI Midland crude\u2014the first such purchase since August\u2014highlighting its reliance on international markets amid domestic supply challenges.<\/p>\n

The $20 billion refinery in Lekki, which aims to compete with European facilities, is operating below its full capacity of 425,000 bpd and targets 85% capacity by year-end.<\/p>\n

Edwin described the crude deliveries from NNPCL as \u201cpeanuts<\/em>,\u201d underscoring the gap between the refinery\u2019s needs and available resources.<\/p>\n

The acting Executive Director of the Crude Oil Refinery-Owners Association of Nigeria, Mathins Obaze, confirmed that Dangote is the sole refinery benefitting from the naira-for-crude deal among the eight operational refineries in the country.<\/p>\n

However, Obaze noted that most members are still unable to access crude under the initiative and are in discussions with the government for a resolution.<\/p>\n

The reasons behind the crude supply shortfall remain unclear, with both the NNPCL and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) declining to comment on the matter.<\/p>\n

Dangote had previously urged NUPRC to enforce regulations mandating oil producers to prioritize local refineries.<\/p>\n

Meanwhile, the NNPCL is pursuing new international markets for its crude oil.<\/p>\n

The company recently sought term customers in London for its newly introduced Utapate crude oil grade, reflecting its strategy to explore global opportunities despite domestic supply issues.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Dangote Petroleum Refinery has revealed that the Federal Government is falling short of its commitment to supply crude oil under the naira-for-crude initiative. According to Dangote Industries Limited Vice President, Devakumar Edwin, the...<\/p>\n","protected":false},"author":2,"featured_media":3239,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3238","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts\/3238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=3238"}],"version-history":[{"count":1,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts\/3238\/revisions"}],"predecessor-version":[{"id":3240,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts\/3238\/revisions\/3240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/media\/3239"}],"wp:attachment":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=3238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=3238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=3238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}