• Tasks stakeholders on right domestic LPG pricing

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced that Dangote Refinery, once completed and licensed, is expected to significantly boost domestic fuel supply.

It urged stakeholders to develop a domestic Liquefied Petroleum Gas (LPG) pricing framework to enhance affordability.

With a production capacity of 650,000 barrels per day, Dangote Refinery is expected to ease fuel shortages and stabilise prices by increasing local production.

NMDPRA Chief Executive, Farouk Ahmed, made this known in his keynote at the 2024 Oil Trading and Logistics (OTL) Africa Downstream Energy Week in Lagos.

He emphasised that the refinery’s completion would align with Nigeria’s strategy to ensure self-sufficiency in refined petroleum products and strengthen energy security.

“Dangote Petroleum Refinery and Petrochemical Limited came on stream in February 2024 for the production of some petroleum products such as Automotive Gas Oil (AGO) and aviation fuel.

“The refinery commenced production and supply of Premium Motor Spirit (PMS) in September 2024. It is expected that supply from the factory will improve significantly when it is fully completed and licensed,” he said.

Ahmed disclosed that the refining sector had been expanding; hence, the agency issued nine licences for the establishment of more refineries.
According to him, Nigeria’s refining capacity has been increasing under the present administration, especially with Dangote coming onstream.

“Last year, NMDPRA revised and consolidated its regulations through strategic industry stakeholder engagements, to streamline the regulatory framework for ease of doing business and compliance. This is complemented by the issuance of relevant guidelines on automation for processes to strengthen regulatory clarity and enhance compliance.

“Our refining sector has been expanding rapidly with the issuance of nine valid Licences To Establish (LTEs), seven Licences To Construct (LTCs) and four Licences To Operate (LTOS) for modular refineries,” he said.

Ahmed acknowledged Tinubu’s leadership in enhancing the investment environment of the mainstream industrial sector through the novel sectoral policies emplaced in the last 18 months.

According to him, the bold reforms of the President have transformed the sector into an attractive investment destination that supports profitability and viable business ventures in the oil and gas industry.

The regulator said the Nigerian petrol market was undergoing a major transformation for liberalisation.

“Our inspired target is to achieve a fully liberalised and mature market for all petroleum products and natural gas, where the market fundamentals lead to robust price discovery and attractive investment opportunities. The Federal Government is deepening the liberalisation of the energy market through robust policies and provision of generous incentives to increase investment by both domestic and international companies,” he added.

Urging stakeholders to develop a comprehensive domestic pricing framework for LPG to make it more accessible and affordable to consumers nationwide, he emphasised that the authority had been engaging stakeholders on domesticating LPG produced in countries by producers like Chevron and Mobil, similar to local LNG, which domesticated its retail production since 2022.

“With regards to alliances, we will continue our quarterly domain-specific engagements with key stakeholders and on-demand engagements with relevant parties to address ongoing and emerging concerns,” Ahmed said.