Tuesday, November 23, 2021

Dangote refinery partners NARTO on petroleum product distribution

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Rayyan Alhassanhttps://dailynigerian.com/author/rayyan/
Rayyan Alhassan is a graduate of Journalism and Mass Communication at Sikkim Manipal University, Ghana. He is the acting Managing Editor at the Daily Nigerian newspaper, a position he has held for the past 3 years. He can be reached via [email protected], or www.facebook.com/RayyanAlhassan, or @Rayyan88 on Twitter.
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Dangote Refinery has said that it will be partnering with the Nigerian Association of Road Transport Owners to distribute petroleum products from the refinery across the country.

A statement on Sunday, from Dangote Industries Limited, said that members of the association paid a visit to the refinery in Ibeju-Lekki during which they toured the facility and expressed their willingness to collaborate on the distribution of refined products.

The NARTO President, Lawal Othman, expressed confidence in the refinery’s size and content, saying that the plan to construct a road from the refinery through Ijebu-Ode, Ogun State was a welcome development that would decongest the roads and smoothen operations.

Mr Othman commented on the state of the downstream sector and expressed the need for deregulation of the oil and gas sector.

He was quoted as saying, “Many people are not refining because the sector is still regulated. It is difficult to invest billions of dollars into a sector, where prices are determined by the government. Deregulation will encourage more players into the downstream sector.”

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Mr Othman said members of NARTO had been given the necessary assurance that their businesses were going to be protected when the refinery comes on stream under the Petroleum Industry Act.

He stated, “We came on a tour of Dangote Refinery to assess the level of construction work going on at the site and also to reassure our members that the refinery is going to have positive impact on their business, most especially with the signing into law of the Petroleum Industry Bill (PIB).

“It is expected that there is going to be full deregulation of Nigeria’s downstream oil and gas sector.

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“At the same time, we hope in the coming months, the Dangote Refinery will come into operation.

“As at today, imported petroleum product is distributed across the country through road by our members.

“We thought that now that Dangote Refinery is coming on stream, the company might be interested in self-distribution of the products across the country without involving us.

“However, we have been told that the products will be distributed through the depots. So, we will partner Dangote refinery for ease of products distribution across the country

“We have been assured that 70 per cent of the refined products will be transported through the sea, while 30 per cent will be by trucking.

“Although, the company has a gantry with a loading capacity of about 2,000 trucks per day, we have been assured that Dangote does not have interest in the retail of petroleum products.

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 “We are certain beyond reasonable doubt that our businesses are going to continue in the downstream sector. Of course, Dangote Refinery is going to produce and distribute through the sea and allow those of us who are into retailing to continue with our business.

“Now, most of our members have the fear that Dangote may go into retailing and distribution of products,” he added.

The president said fears of Dangote Refinery competing with them had been allayed as the company said 70 per cent of the refined products would be transported through the sea and 30 per cent by trucking.

He said the company had assured it would not be a player in the retail of petroleum products and would be partnering with truck owners instead.

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