Latest news with #DevakumarEdwin
Business Insider
6 days ago
- Business
- Business Insider
Fuel supply overhaul in Nigeria looms as Dangote's 4,000 CNG trucks roll in
The Dangote Petroleum Refinery has begun receiving its much-anticipated fleet of 4,000 compressed natural gas (CNG) trucks, ahead of the August 15 inauguration of its statewide fuel distribution logistics scheme. 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.
Business Insider
08-07-2025
- Business
- Business Insider
Dangote Refinery to process 100% Nigerian crude by end of 2025
Dangote refinery will be fully reliant on Nigerian crude by the end of 2025, according to Devakumar Edwin, vice president of Dangote Industries. Dangote Refinery aims to fully rely on Nigerian crude by the end of 2025, transitioning from international sources. As of June, 53% of crude supply for the refinery was sourced domestically, with the remainder imported. The $20 billion refinery commenced operations in 2024, making significant contributions to Nigeria's energy sector. Dangote refinery will be fully reliant on Nigerian crude by the end of 2025, according to Devakumar Edwin, vice president of Dangote Industries. The 650,000-barrel-per-day refinery, owned by Aliko Dangote, Africa's richest man, sourced half of its crude supply from local producers in June. That share is expected to grow, as more Nigerian suppliers choose to sell directly to the refinery rather than meet export obligations, Bloomberg reported. ' We expect some of the long-term contracts will expire. Personally, and as a company, we expect that before the end of the year, we can transition 100% to local crude,' Edwin said. The $20 billion Dangote refinery, which began operations in 2024 after years of delays, is now producing aviation fuel, diesel, gasoline, and naphtha. Ranked by Bloomberg as having a higher capacity than the ten largest refineries in Europe, it stands as a major milestone for Nigeria and Africa's energy sector. From import dependence to net fuel exporter Though still ramping up to full capacity, the refinery has already transformed Nigeria into a net exporter of petroleum products. However, meeting initial demand required large volumes of imported crude, as local traders were unable to supply sufficient quantities. Since opening, the Dangote refinery has sourced crude from countries including Brazil, Angola, Ghana, and Equatorial Guinea. Improving coordination between the refinery, local oil traders, and the Nigerian government is expected to ensure a more consistent supply of domestic crude, according to Devakumar Edwin. Still, a significant boost in local output will be needed in the coming months. In June, 53% of the refinery's crude came from Nigerian producers, while 47% was imported from the U.S. The plant is currently processing around 550,000 barrels of crude per day, Edwin said.
