Dr. Godswill Ihetu, former Group Executive Director of NNPC Limited and ex-Managing Director/CEO of Nigeria LNG Limited, assured that with the activation of the Dangote Refinery Units, there will be ample PMS supply for both Nigeria and the export market.
This statement was shared by Ihetu in an interview on Arise Television on Monday.
He underscored that the Dangote Refinery carries the potential to significantly impact Nigeria’s economy.
He said, ‘I think it’s a major milestone. This is something we’ve been expecting for quite some time.’
‘Availability of PMS definitely, when all the units are activated, there will be enough PMS in the country to supply the entire country and a surplus for exports as well.’
Speaking on the current status of the refinery, Ihetu said, ‘We’ve been told that out of that 650,000 barrels, we’ll be starting with 350,000, and what we have seen in the media shows that, in fact, the products out of that mean they will start commissioning. That’s the process they are going through now.’
‘We haven’t seen any indication of the first product out there in the market because commissioning will take some time.’
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On the commissioning process, he said, ‘Commission refers to introducing the crude oil into the system, which includes flushing the system before you start introducing the crude oil into the units that the system has been cleaned from the construction phase.’
He said, ‘What we are hearing is that the initial products will be diesel, LPG, and aviation fuels. No mention of PMS anytime soon, but they said it will come later, and I think that’s an indication of which units they are going to activate.’
Speaking on the significance of manufacturing these products locally, Dr. Ihetu highlighted, ‘It’s a major impact. The pricing thing is a little bit dodgy for me; I’m not quite sure. Firstly, at what price will Dangote be buying crude oil from Nigeria? I’m guessing international prices because you’ve seen how they’ve gone to buy crude from NNPC.’
Addressing concerns about the environmental impact, he expressed, ‘The issue of trucks is there are like 3000 trucks, and each of those trucks takes 30,000 litres. That’s just an estimate as the trucks will probably be carrying other products as well, but the point you make about the impact on the environment is a huge one. Trucks are too many for that system.’
Ihetu stressed the importance of a robust infrastructure to efficiently manage the products and lessen dependence on trucks.
He said, ‘If we had that capacity to take from Atlas Cove, we would’ve been able to reduce the trucks on the road.’