Page 12 - DMEA Week 35 2022

DMEA REFINING & FUELS DMEA

Iraq is currently consuming around 30mn litres meaning that consumers drivers have no need
per day of diesel, up from 22mn lpd a year ago, to hoard fuel, the undersecretary continued.
and the increase is attributable in large part to The MoO is making large volumes of gasoline
the greater use of privately owned diesel-fired available to filling stations and distribution facil-
generators, he explained. ities in both Baghdad and in the governorates,
Meanwhile, the MoO has been working to he said. ™
supply enough diesel to meet demand in accord-
ance with a resolution issued by the Council of
Ministers in July, he said. That resolution obli-
gates the ministry to sell more diesel fuel for
use in generators and to establish facilities in all
non-regional governorates for diesel sales, he
noted. It also fixes domestic diesel prices at the
below-market level of IQD250 ($0.17) per litre
so that privately owned generators can make up
for electricity shortages, he added.
Younis urged Iraqis not to take advantage of
the artificially low prices, saying that the MoO
intended to monitor the domestic fuel market
closely in order to prevent hoarding, smuggling
and black market trading. The ministry will
work with the security forces to conduct checks
of distribution hubs and other sites, he stated.
Baghdad is also striving to ensure that gaso-
line supplies are adequate around the country, Private generators are consuming more fuel (Photo: Twitter/@BaghdadAlSalam)

Kyari says NNPC Ltd has locked in crude

supply agreement with Dangote Refinery

AFRICA MELE Kyari, the group CEO of Nigerian stated, according to a report from Premium
National Petroleum Co. Ltd (NNPC Ltd), said Times.
on August 30 that his company has already In practical terms, he said, this means that
locked in long-term supply arrangements with NNPC Ltd has “locked in the ability to sell crude
the Dangote Refinery, the massive oil-process- oil” to the Dangote Refinery at the rate of at least
ing plant now under construction near Lagos. 33,000 barrels per day (bpd) for the next two
NNPC Ltd owns a 20% equity stake in the decades.
Dangote plant and has the right of first refusal The national oil company (NOC) will also
with respect to supplying feedstock to the refin- receive a 20% portion of the plant’s output cor-
ery for processing over a period of 20 years, he responding to its equity stake, Kyari said.

The refinery will eventually be able to process 650,000 bpd of oil (Image: Dangote Group)

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