Fuel supply overhaul in Nigeria looms as Dangote's 4,000 CNG trucks roll in
The Dangote Petroleum Refinery & Petrochemicals has initiated the deployment of 4,000 compressed natural gas (CNG)-powered vehicles.
The project aims to revolutionize Nigeria's petroleum distribution system by reducing costs and improving efficiency nationwide.
The total investment for this fleet is approximately N720bn, showcasing the company's commitment to innovative solutions.
'The first consignment of trucks recently departed Apapa Port and was formally received at the refinery site in Ibeju-Lekki by the Vice-President of Oil and Gas at Dangote Industries Ltd, Devakumar Edwin, the refinery revealed via a statement issued on Sunday.
As per the Punch, the statement also asserted that the project will alter Nigeria's petroleum distribution system by lowering logistical costs and increasing supply efficiency for clients across the nation.
'The fleet of fuel tankers, being imported through Apapa Port, represents a significant capital investment estimated at N720bn,' the refinery noted.
'This expenditure underscores the company's commitment to pioneering innovative solutions as the world's largest single-train refinery continues to expand its operational capabilities.'
Dangote's distribution plan
The introduction of CNG trucks marks a significant step forward for the refinery, which is now operating at approximately 85% of its 650,000 barrels-per-day capacity.
This scale ranks the Dangote plant among the world's largest single-train refineries, enabling it to achieve lower per-barrel production costs and establish itself as a prominent participant in Africa's energy industry.
According to the refinery, the deployment of the CNG-powered fleet, which is about 40% more cost-effective than conventional diesel tankers, would drastically reduce the costs of delivering petroleum products across the country.
Dangote announced plans to deploy 4,000 vehicles in June, aiming to save about ₦1.7 trillion annually on gasoline distribution expenses.
This transition to CNG-powered logistics is also a move toward cleaner energy, matching with worldwide trends to cut carbon emissions from the petroleum sector while delivering a more dependable and cost-effective distribution network.
Beyond lowering fuel transportation costs, the corporation expects the program to have a favorable impact on the whole economy.
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