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Dangote Refinery Gets More Crude Supply From NNPC Ltd

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It appears that local fuel production is in for a boost in Nigeria, with authorities increasing allocations to local refiners.

In this regard, the Nigerian National Petroleum Company Limited (NNPC Ltd) has increased crude oil supply to the Dangote Petroleum Refinery and Petrochemicals (DPRP).

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Two trader sources told Reuters on Tuesday that the latest allocation marks an increase from the five cargoes the refinery had been receiving in previous months. However, this means the refinery will continue to receive five cargoes in April.

The development comes amid mounting pressure on fuel supply and rising petrol prices across Nigeria, as the refinery struggles to secure sufficient crude locally.

The report read, “The Nigerian National Petroleum Company is allocating seven crude cargoes for May loading to Nigeria’s Dangote refinery, up from the five it received in previous months, two trade sources told Reuters.

“Fuel prices in Nigeria have reached record highs, and Dangote has previously said the company could source only about five crude cargoes a month locally, far short of the 13–15 it requires, forcing it to import the rest at prices dictated by the impact of war in the Middle East.”

Officials of the national oil company and the refinery did not respond to requests for comments as of the time of filing this report.

The development aligns with earlier reports by The PUNCH that the Federal Government, through the NNPC, was working to increase crude supply to the Dangote refinery under ongoing arrangements aimed at strengthening local refining capacity.

Multiple industry sources and officials from both NNPC and the Dangote refinery told our correspondent exclusively in early March that the national oil company is leveraging its global crude trading network to source third-party supply for the Dangote refinery at competitive international market rates.

“Leveraging our global crude trading network, we are sourcing third-party crude for the refinery at prices that are competitive with prevailing international market rates,” a senior official at NNPC, who spoke in confidence due to a lack of authorisation to speak on the matter, said.

The official further explained, “As the national oil company entrusted with safeguarding Nigeria’s energy security, NNPC Limited remains fully committed to supporting domestic refining, including the Dangote Petroleum Refinery. Within the framework of our existing agreements, we continue to facilitate crude supply to DRP in the face of temporary availability constraints.”

Despite the increase, the 650,000-barrels-per-day refinery still faces a significant shortfall in crude supply. The facility requires between 13 and 15 cargoes monthly to operate at optimal capacity, but has continued to receive far less from domestic sources.

This has forced the refinery to rely on imported crude, exposing it to volatile global prices driven by geopolitical tensions, particularly conflicts in the Middle East. The refinery had earlier warned that limited domestic supply was constraining its operations and increasing costs.

Nigeria’s fuel prices have climbed to record levels in recent months, driven by supply constraints and high import costs. Although the Dangote refinery has ramped up petrol supply to the domestic market, it is currently meeting just over two-thirds of the country’s estimated daily demand of 60 million litres.

In response to rising costs, the refinery recently increased petrol depot prices by about 13 per cent, further adding to price pressures in the downstream sector.

The decision by NNPC to increase crude allocations to the refinery could have implications for Nigeria’s crude export volumes. With global supply already tight due to disruptions linked to tensions in the Middle East, any diversion of crude to domestic refining may reduce volumes available for export.

This could force international buyers to seek alternative sources, potentially affecting Nigeria’s position in the global crude market.

The refinery, which commenced operations in 2024, is expected to significantly reduce Nigeria’s dependence on imported petroleum products.

However, challenges around crude supply, pricing, and logistics have continued to shape its operations. Increasing domestic crude allocation remains critical to achieving energy security, stabilising fuel prices, and reducing pressure on foreign exchange.

They, however, note that sustained supply at required volumes will be key to unlocking the refinery’s full potential and delivering long-term benefits to the Nigerian economy.

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Renaissance Gas Production Peaks at 2.2bcf, Eyes 3bcf by 2030

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Decade of Gas: Ekpo Moves for Regional Gas Development, Collaboration To unlock Africa’s vast natural gas potential and address persistent energy deficits, Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has moved for stronger regional collaboration intracontinent. This is even as Nigeria keeps pushing for Integrated Gas Market, Cross-Border Projects at the Ministerial Roundtable on Regional Gas Development and Cooperation in Africa, held in Abuja. At the event which had participation from the World Bank, Ekpo stressed that Africa’s energy future hinges not on the abundance of its resources but on collective action and coordinated strategies. Addressing ministers, development partners, and stakeholders, the minister highlighted the paradox of Africa’s energy landscape, noting that while the continent holds over 600 trillion cubic feet of proven natural gas reserves, more than 600 million people still lack access to electricity, with millions relying on traditional fuels for cooking. “This is not a question of resource availability, but one of coordination, infrastructure, and collective action,” he said. Ekpo described natural gas as a critical pathway to Africa’s self-reliance, capable of driving industrialisation, expanding energy access, and strengthening economic resilience. However, he emphasised that no single country can unlock this potential alone, underscoring regional cooperation as the cornerstone of sustainable development. He noted that Nigeria, with over 210 trillion cubic feet of gas reserves, is advancing its “Decade of Gas” initiative to position itself as a regional hub through partnerships with other African nations. He cited key cross-border projects already demonstrating the benefits of collaboration, including the West African Gas Pipeline, Trans-Sahara Gas Pipeline, Nigeria–Equatorial Guinea Gas Pipeline, and the Nigeria–Morocco Gas Pipeline. To scale up impact across the continent, Ekpo outlined four priority areas for deepened cooperation. These include the development of regional gas supply and market frameworks, with a shift from fragmented national systems to integrated markets featuring transparent pricing, aggregated demand, and efficient cross-border trade. The Minister also emphasised the need to expand gas-to-power and clean cooking initiatives to ensure that gas development translates into tangible benefits such as reliable electricity and improved living standards for citizens. On financing, the minister called for innovative, climate-aligned funding models, including blended finance structures, increased private sector participation, and stronger collaboration with international partners like the World Bank. Ekpo further stressed the importance of harmonising policy and regulatory frameworks across countries to reduce investment risks and accelerate project delivery, pointing to Nigeria’s Petroleum Industry Act as a useful reference model. He described natural gas as Africa’s “transition fuel,” serving as a practical bridge for expanding energy access, supporting industrial growth, and lowering emissions intensity, while ensuring a just and inclusive energy transition. The minister urged that the Abuja roundtable should move beyond discussions to deliver concrete outcomes, including clearly defined areas of cooperation, identification of priority bankable cross-border projects, and the establishment of institutional mechanisms to drive implementation. Reaffirming Nigeria’s commitment, Ekpo said the country stands ready to collaborate, invest, and provide leadership where necessary in building an integrated African gas market. He concluded that aligning vision, coordinating actions, and committing to shared progress would enable Africa to transform from a continent of stranded gas resources into one of integrated energy prosperity. “The future of Africa’s energy lies not in isolated pipelines, but in connected systems, shared markets, and collective ambition,” he said.

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U.S. to Tweak LNG Safety Rules for Foreign Markets

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With a view to accelerating infrastructure development and reducing operating costs, the U.S. Department of Transportation is contemplating a new set of safety regulations for liquefied natural gas facilities.

This is coming as American exporters prepare for another major expansion in global natural gas markets.

It was gathered that the proposal, issued by the Pipeline and Hazardous Materials Safety Administration (PHMSA), would modernize federal LNG safety requirements by incorporating standards developed by the National Fire Protection Association.

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The changes are to address facility location, engineering, construction, operations, and maintenance, with greater flexibility to adopt newer technologies.

Transportation Secretary, Sean Duffy estimates that the updated framework could save LNG operators approximately $100 million annually while maintaining safety protections. The projected savings are an agency estimate, and the proposal has not yet become a final regulation.

The initiative comes as the United States strengthens its position as the world’s largest LNG exporter. American export capacity is expected to increase by approximately 100 million metric tons annually by the end of the decade, supported by projects already under development and additional planned investments.

Global LNG demand has also become more sensitive to geopolitical disruptions. Interruptions to Middle Eastern gas shipments associated with the conflict involving Iran have encouraged international buyers to evaluate alternative suppliers and diversify long-term procurement arrangements.

U.S. LNG developers have responded with additional investment commitments. Projects representing more than 50 million metric tons of annual capacity have reached final investment decisions since the beginning of 2025.

Major exporters, including Cheniere Energy and Venture Global, are pursuing additional development opportunities as federal policy places greater emphasis on expanding domestic energy infrastructure.

However, regulatory modernization does not eliminate the financial or operational challenges associated with LNG construction.

Developers must still secure the Federal Energy Regulatory Commission (FERC) approvals, complete environmental reviews, arrange financing, and address potential legal challenges. Pipeline connections, specialized equipment availability, construction costs, and long-term customer contracts also influence project schedules.

Delfin LNG, which is developing a floating export facility, illustrates the importance of infrastructure safety approvals. Its associated pipeline has not received publicly confirmed PHMSA clearance to resume operations following an explosion earlier this year.

Separately, FERC has proposed a streamlined authorization framework for certain modifications and expansions at existing LNG facilities, including activities that could qualify for automatic approval or shortened review periods.

For energy investors, the combined regulatory initiatives could improve development visibility and reduce some costs, although their financial impact will depend on final requirements and individual project circumstances.

Additional LNG export capacity could support demand for U.S. natural gas production, particularly from major producing regions connected to Gulf Coast terminals.

Midstream operators, engineering companies, compression equipment manufacturers, and construction contractors could also benefit from continued infrastructure investment.

At the same time, greater export demand may increase domestic natural gas price sensitivity to international markets, creating different implications for producers, utilities, and industrial consumers.

Investors will be monitoring the final PHMSA regulations, FERC permitting developments, LNG project financing decisions, and the pace at which proposed export capacity enters commercial service.

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NALPGAM Preaches Innovation, Safety to LPG Operators

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GAS: New Temile/Hyundai LPG Vessel to bring down high cost of cooking gas in Nigeria-NCDMB

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has urged operators in Nigeria’s liquefied petroleum gas (LPG) industry to strengthen safety standards, improve regulatory compliance and adopt digital technologies to reduce operational losses and drive business growth.

The association said improved operational practices would help protect investments, enhance efficiency, build consumer confidence and support the sustainable expansion of C.

The call followed its 2026 webinar, themed “Downstream LPG Operational Excellence and Compliance,” which brought together industry operators, regulators and other stakeholders to discuss safety risks, market volatility, operational inefficiencies and regulatory requirements in the downstream LPG sector.

Speaking at the event, NALPGAM National President, Edu Inyang, said the industry’s long-term growth would depend on more than increased consumption and supply volumes, stressing the need to embed safety and operational efficiency in everyday business practices.

“The future of Nigeria’s LPG industry cannot be achieved by increasing volumes alone. We must grow safely, responsibly, efficiently and sustainably. Safety is not an occasional campaign; it must become a continuous industry culture,” he said.

READ ALSO: Tinubu Promises to Boost Local Production with NNPC Refineries

A major outcome of the webinar was a proposal for a NALPGAM Standard of Operational Excellence, anchored on four principles: safe and well-maintained facilities, competent and adequately trained operators, regulatory-compliant processes, and consumer protection.

Participants urged operators to integrate safety into routine operations, strengthen preventive maintenance and comply with licensing and incident-reporting requirements.

They also called for an end to unsafe practices, including unauthorised propane blending and illegal decanting, warning that such activities could expose businesses and consumers to avoidable risks.

Inyang said compliance should be viewed as a means of strengthening business performance rather than merely fulfilling regulatory obligations.

“Compliance is not merely a regulatory burden; it is a business advantage. Well-managed LPG operations reduce accidents, improve efficiency, protect investments and strengthen public confidence in our industry,” he said.

The webinar also highlighted the role of digital technologies in improving operational efficiency and accountability across the LPG value chain.

Participants identified smart filling systems, automated tank gauges, load cells, flow meters and vehicle-tracking systems as practical tools for monitoring product movements, reducing losses and improving inventory management.

Wider adoption of these technologies, they said, could help operators strengthen operational controls, minimise discrepancies and improve the reliability of LPG distribution.

The discussions come as Nigeria seeks to expand LPG consumption to approximately five million tonnes annually by 2030, a target that will require increased investment, stronger distribution networks and wider consumer access.

Stakeholders called for greater industry participation in the Decade of Gas LPG penetration programme, alongside stronger collaboration to expand access, improve cylinder traceability and promote certified local manufacturing.

The NALPGAM also urged regulators and programme coordinators to involve its members more actively in implementing LPG penetration and cylinder recirculation initiatives.

According to the association, its members’ nationwide presence and proximity to consumers could help improve the reach and effectiveness of programmes designed to increase LPG adoption.

Reiterating the association’s position, Inyang said the industry must establish clear operational standards that protect consumers while supporting efficient and sustainable business practices.

“Our aspiration is clear: every LPG facility must be safe and properly maintained, every operator competent and adequately trained, every process compliant, and every customer protected. This is the standard of operational excellence we must collectively pursue,” he said.

The NALPGAM reaffirmed its commitment to working with government agencies, regulators and industry stakeholders to develop a safer, more efficient and competitive LPG market.

The association maintained that embedding safety, strengthening compliance and deploying appropriate technologies would be critical to improving operational performance and supporting the long-term growth of Nigeria’s LPG industry.

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Fears of Fresh US Strikes on Iran Fuels Crude Price Surge

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OPEC Appoints Next Secretary General, Effective August 2022

Fears of renewed US military strikes on Iran and escalating threats to energy infrastructure across the Middle East heightened concerns about global crude supplies have pushed-up crude oil prices in the global market.

These factors pushed crude oil prices over $117 a barrel in the global market, even as oil theft and pipeline losses in Nigeria fell by 82.9 percent in five years, from 102,900 barrels per day (bpd) in 2021 to 17,600 bpd in the first seven months of 2026, amid fresh concerns about further increases in lost volumes after years of decline.

Nigeria’s oil benchmark, Brent crude, climbed by about 3.5 percent to cross $117 a barrel during trading before easing to just above $116, still up approximately 2.7 percent.

READ ALSO: Navy Uncovers 132,000 Litres of Stolen Crude Oil in Bonny

The latest rally followed reports that Washington was considering fresh military strikes against Iran after the November 3 midterm elections, raising concerns that the conflict, now in its eighth month, could escalate further rather than move towards a diplomatic resolution.

Iran had threatened to attack oil facilities, undersea cables, data centres and artificial intelligence infrastructure across the Gulf if the United States and Israel launched a new offensive against the country.

Recall that Brent crude traded at about $72 a barrel in February, before the war began, but surged to about $126 a barrel by the end of April as the conflict intensified and concerns mounted over supply security.

Tensions rose again during the week following claims by Iran’s Islamic Revolutionary Guards Corps (IRGC) that it struck four commercial vessels in the Strait of Hormuz on Wednesday.

The US ordered some diplomats and family members of American government employees to leave Saudi Arabia, which had faced continued attacks by Houthi rebels operating from Yemen.

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