Dangote Refinery Debunks Claims of Inferior Diesel

UGO AMADI

Dangote Industries Limited (DIL) has condemned and debunked the claims criticizing the quality of its products, affirming that its refined diesel is 80% superior to those currently imported into Nigeria.

The company’s spokesperson, Anthony Chiejina, said the reports of producing high-sulfur diesel or lesser quality is mischievous and aimed at tarnishing the reputation of the $20 billion refinery.

According to Chiejina, the allegation was false, baseless, and mischievous.

The refinery is designed to produce top-quality petroleum products that meet strict international standards.

It would be recalled that the Authority Chief Executive (ACE) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDRA), Farouk Ahmed recently said that the Dangote Refinery (DR) was still at the pre-commissioning stage and has not been licensed by the Authority.

Farouk added that it was not true that there were subtle plans to scuttle the refinery which is believed to put an end to importation and largely resolve lingering issues on petroleum products.

According to him, DR and some other refineries in the country produce inferior products compared to imported commodities.

However, Dangote insists that  “the false and misleading allegations made by some media outlets that DR is producing substandard diesel which is why it reduced the price by 37%, is baseless and mischievous.”

“Until last year, diesel imports into Nigeria were up to 7,000 parts per million (ppm) of Sulphur which has been going on for many years. Our diesel is produced currently at significantly lower levels of Sulphur; as such, we find baseless the allegation that the reason for the reduction is linked to quality. What we are producing is 80% of what is being imported into the country.

“Another inaccurate assertion is that medium-level Sulphur diesel is meant for off-road use. This is a completely false statement as this would have invariably meant that all the imports for the last twenty years have been damaging equipment.”

Chiejina pointed out that diesel imports for the high Sulphur grade had been at significantly higher prices until DR started operation. If indeed high Sulphur diesel is sold at lower prices, how come the country never saw the lower prices?

On the aspect of reduction, he said the reason was because DR diesel price was principally due to the patriotism of the management to the nation as well as prevailing market dynamics supply and demand.

Some energy experts believe that the bickering between the Authority and DR may derail positive development in the country’s midstream and downstream sectors.

The DR had given hope, especially on the aspect of importation of petroleum products gulping millions of dollars. But if the current issues are not well handled is capable of slowing down progress in the sector.

However, some industry sources have revealed some level of misrepresentation, according to Kelvin.

@realkelvin07 in his X handle asserts that Commercial refineries undergo 7- stages of pre-commissioning. NMDPRA has officials who stay with the refinery for 12 months to check the entire system from mechanical to electrical and monitor the processes.

After 6-months of testing wet production, they issue them a provisional acceptance certificate for a license to operate. After 12 months, they issue them a final acceptance certificate for a license to operate — that test is currently nearing 180 days for PAC.

Wet production test for pre-commissioning doesn’t mean the refinery is not already in production, it means the refinery is not yet functioning at full capacity utilization yet.

The very fact that the condensation distillation unit has not fully gone into effect is the reason his diesel is currently producing 150-200 parts per million in terms of sulphur content—that will drop to below 50 ppm when all the centrifuges come into operation.

He said ‘’It’s utterly disappointing that the NMDPRA chief in trying to sell a narrative, will attempt to de-market the refinery and mislead the public.’