The Federal Government disclosed on Tuesday its intention to grant a fully valid operating license to the Dangote Petroleum Refinery, which boasts a capacity of 650,000 barrels per day. The announcement was made during the Stakeholders’ Consultation Forum on Midstream and Petroleum Host Community Development Trust Regulations, organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
While the NMDPRA had previously awarded a pre-commissioning license to the $20 billion refinery, it clarified that a fully valid operating license would soon follow.
Former President Muhammadu Buhari inaugurated the Dangote refinery in May 2023, marking a significant milestone in Nigeria’s oil and gas industry. The refinery commenced the release of Automotive Gas Oil (diesel) to the domestic market in April of the current year but has yet to release Premium Motor Spirit (petrol).
Addressing stakeholders at the forum, Farouk Ahmed, the Chief Executive of NMDPRA, stated that the authority is on track to issue the refinery a fully valid operating license in the near future. Ahmed, represented by Ogbugo Ukoha, the Executive Director of Distribution Systems, Storage, and Retailing Infrastructure, highlighted that currently, only three refineries possess valid licenses.
Ahmed further elaborated on the licensing status across various sectors of the downstream oil and gas industry. He mentioned that 15 gas facilities across the country hold valid licenses, with more undergoing processing. Additionally, there are 1,199 facilities with valid licenses in the downstream sector, along with over 176 operators holding gas import permits.
In the liquid licensing domain of the downstream sector, there are 130 depots with valid licenses, while more than 69 coastal vessels have been granted valid licenses. Moreover, as of April 30, 2024, NMDPRA has licensed 9,464 retail outlets.
Explaining the rationale behind considering locations in the midstream and downstream arms of the oil sector as part of host communities, Ahmed emphasized the impact of emissions and effluence on these areas.
The forum served as a platform for stakeholders to express their ideas and suggest measures that would enhance the relationship between NMDPRA and host communities in the mid and downstream arms of the oil sector.
