Energy
Dangote Supplies over 72% of Nigeria’s Petrol as Consumption Falls 17%
The Dangote Refinery supplied about 72.3 percent of Nigeria’s total domestic demand for petrol in March, while consumption fell by approximately 17 percent during the period under consideration from 56.9 million litres per day in February to 47.3 million litres last month.
Besides, although still modest compared to last year’s massive importation, the share of petrol imports in the supply mix surged by 96.7 percent month-on-month, rising from 3 million litres per day to 5.9 million litres/day during the period.
Data from the March 2026 fact sheet on midstream and downstream petroleum operations provided by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday, showed that the 47.3 million litres per day consumption for march fell below the national average of 50 million litres per day.
Overrall, the data indicated that total domestic petrol supply stood at 34.2 million litres per day in March. When measured against total consumption of 47.3 million litres per day, this placed Dangote Refinery’s contribution at approximately 72.3 percent of the domestic market, reaffirming its dominant role in the country’s fuel supply chain.
However, the supply mix also reflected a sharp increase in the role of imports. The fact sheet showed that petrol import contribution rose from 3 million litres per day in February to 5.9 million litres per day in March, equivalent to a 96.7 percent jump in import share.
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However, this increase in imported petrol between February and March was despite the downstream regulator’s insistence that it has halted the issuance of import licenses to oil marketers for months.
For over a year, owner of the 650,000 barrels per day facility in Lagos, Aliko Dangote, has pushed to end petrol imports in order to, according to him, protect local refining and grow the economy. Dangote’s refinery, which began production of petrol in 2024, has argued that Nigeria’s import licensing regime undermines local refining by allowing marketers to continue bringing in petrol even when domestic supply is increasing.
The company has maintained that under the Petroleum Industry Act (PIA), imports should only be permitted when there is a clear supply shortfall, not as a parallel system competing with local production.
On the other hand, oil marketers and a cross section of Nigerians believe that leaving the market solely for Dangote, without any competition from any other refinery, especially from NNPC’s defunct Port Harcourt and Warri refineries will lead to a monopoly and inflated pump prices.
The NMDPRA fact sheet further showed that other domestic refining sources contributed only marginal volumes, specifically diesel refining. The three operational modular refineries: Walter Smith, Edo Refinery, and Aradel collectively supplied about 0.629 million litres per day of diesel during the month.
Walter Smith refinery operated at an average capacity utilisation of 59.56 per cent, supplying 0.241 million litres per day. Edo Refinery recorded 64.69 percent utilisation with 0.051 million litres per day, while Aradel posted 58.84 percent utilisation, delivering 0.337 million litres per day.
Average diesel consumption during the period stood at 14.5 million litres daily, slightly above the 14 million litres per day national benchmark, despite the rising prices as a result of the Middle East crisis, indicating sustained demand from industrial and commercial users.
Similarly, in March, aviation fuel consumption remained lower at 2.1 million litres per day compared to the 3 million litres per day benchmark for the country and against the 2.9 million litres per day supplied in February.
In the whole gas market segment, total supply averaged 4.888 Billion Standard Cubic Feet Per Day (Bscf/d). Of this, 3.033 Bscf/d was supplied to the Nigeria LNG (NLNG), representing approximately 62 percent of total gas supply.
Domestic gas supply stood at 1.855 Bscf/d, with utilisation spread across key sectors. Gas-to-power accounted for 0.485 Bscf/d, commercial consumption stood at 0.430 Bscf/d, and gas-based industries utilised 0.601 Bscf/d.
In the Liquefied Petroleum Gas (LPG) segment, the NMDPRA data indicated that demand outpaced supply during the period. Average daily supply stood at 4,726 metric tonnes, while consumption reached 5,122 metric tonnes per day, leaving a shortfall of 396 metric tonnes daily. Also, retail LPG prices ranged between N980 and N1,450 per kilogramme nationally.
Fuel sufficiency data showed that petrol stock levels stood at 21 days, including pumpable volumes at the Dangote Refinery, diesel sufficiency was 55 days, aviation fuel stood at 109 days, and LPG at 14 days.
In the same vein, the midstream and downstream regulator put the Ajaokuta-Kaduna-Kano (AKK) gas pipeline completion level at 79.23 per cent; OB3 River Crossing at 59.50 per cent and the Odidi-Warri Expansion Project (OWEP) at 67.34 per cent completion rate.
Energy
OPEC+ Retains Output at 30.9mbpd
In a confirmation of expectations that more policy adjustments will not occur until 2027, OPEC+ oil-producing countries have voted to keep December production targets steady.
The OPEC+ alliance, yesterday, agreed in principle to keep its combined December oil output targets unchanged at 30.9 million barrels per day (bpd), with Saudi Arabia’s individual target held at 10.5 million bpd.
The resolution was passed at a virtual meeting attended by seven core OPEC+ members- Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.
This is as the group continues to struggle with export disruptions from the Middle East crisis, while Gulf members have been boosting exports that have been disrupted for months by the conflict, most are still pumping well below their targets.
OPEC+ comprises the Organisation of the Petroleum Exporting Countries (OPEC) and allies including Russia. Only the seven members — plus the United Arab Emirates (UAE) until it quit OPEC in May — have been involved in monthly output decisions in recent years.
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All members of the 21-country group are due to meet on November 29, when it will decide 2027 quotas.
“Today’s decision was the easy one,” said Jorge Leon, an analyst at Rystad. “The much more important test comes at the November 29 ministerial meeting, when OPEC+ will decide its 2027 production framework.”
Oil prices jumped more than two per cent on Friday, with Brent crude settling at almost $118 a barrel, the highest since April, as traders braced for a potential escalation in the Iran war after the US midterm elections.
“OPEC+ faces an extremely difficult call for 2027,” Leon added. “The group has to plan around huge uncertainty over the US-Iran war, the pace of recovery through the Strait of Hormuz, and the size of the surplus that could emerge once disrupted barrels return.”
The seven members have been boosting output targets for much of 2026 and in September completed the phased rollback of a 1.65 million-barrel-per-day supply cut first agreed in 2023. At earlier meetings, they kept the targets steady for October and November.
OPEC+ still has one more layer of production cuts of about two million bpd covering most members through the end of 2026.
The group needs to complete a review of members’ production capacity during the fourth quarter before setting the 2027 baselines that will determine future quotas and shape plans to unwind those cuts, sources have said.
The Iran war has disrupted projects to expand capacity across the Middle East, throwing estimates of future production potential into uncertainty, Reuters reported in October. As a result, the review is now expected to be completed by mid-November.
Energy
U.S. to Tweak LNG Safety Rules for Foreign Markets
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.
Energy
NALPGAM Preaches Innovation, Safety to LPG Operators
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.
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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.





