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OPEC says Dangote refinery’s diesel, jet fuel supplies to disrupt Europe’s oil & gas industry

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Nasiru Yusuf Ibrahim

 

It is a big plus to Nigeria’s economy

 

The Organisation of Petroleum Exporting Countries, OPEC, has said supplies from Nigeria-based world’s largest single-train Dangote Refinery and Petrochemicals will put pressure on the performance of Europe’s oil industry, especially the Northwest Europe (NWE) Gasoil.

KANO FOCUS reports that OPEC in its newly released monthly Oil Market Report for June 2024 listed Dangote Refinery among the top Diesel and jet Fuel suppliers that will disrupt Europe’s oil & gas Industry, a development experts forecasted will positively impact the Nigerian economy.

It would be recalled that Standard & Poor Global quoting trading and the ship tracking sources had earlier predicted that Nigeria’s $20 billion Dangote refinery would shake up international crude flows when it reaches full capacity, having already made an impact since coming online in January, trading sources and ship tracking data show.

The OPEC report revealed that “Upside potential for higher production levels from Nigeria’s Dangote refinery, coupled with strong flows from the Middle East and new supplies from the Mexican Olmeca refinery, will likely exert pressure on NWE gasoil performance in the mid-term.”

It stated further “Europe is one of the world’s largest purchasers of refined petroleum products and relied on imports from Asia and the US after the European Union banned the use of Russian diesel in the bloc.

However, the 650,000bpd capacity refinery which is owned by the Africa’s richest man, Aliko Dangote, is eyeing the wider European market after International Oil Companies stopped supplying its crude oil.

Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin announced the company had earlier exported its first jet fuel cargo to Europe as it rapidly scales production.

The refinery is said to have exported 90 percent of its 3.5 billion litres of jet fuel and diesel to Europe over alleged lack of support from the Nigerian government.

“It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 percent of our production, have been exported,” Edwin said

BP is currently transporting its first jet fuel cargo to Rotterdam from Dangote, after being awarded part of a 120,000 metric tonnes tender offered for the end of May, according to S&P Global.

OPEC stated that, “In June, the jet/kerosene crack spread in Rotterdam against Brent showed a slight decline, influenced by supply-side dynamics. Despite signs of improving air travel activities, subdued jet fuel demand from the aviation sector weighed on the product market

“Going forward, European jet/kerosene demand is expected to see upward pressure as consumption levels from the aviation sector continue to pick up in the coming months.”

S&P had noted that Dangote Refinery in its first six months, scaled to 400,000 b/d and delivered diesel, jet fuel, naphtha, and fuel oil to both domestic and export markets, with Gasoline, Nigeria’s primary fuel type, being expected to be produced from mid-August

Notwithstanding, the refinery has already affected crude flows, with dozens of Nigerian cargoes remaining in-country and US WTI Midland, a comparable light, sweet grade, being imported

The mega-refinery could therefore tighten the light, sweet crude market. “Its diet is WTI and the lighter Nigerian [crudes] so if you were chasing those barrels you’d probably feel it quite keenly,” a West African crude trader told Commodity Insights. “Once they get to 650,000 b/d without any WTI Midland, ‘severely disrupted’ [will be] the headline.”

WTI Midland crude initially emerged as the favored feedstock to supplement Nigerian supply, with the refinery signing long-term supply contracts for the US grade and noting its competitive pricing. Platyts, part of Commodity Insights, last assessed WTI Midland into Rotterdam at $82.36/b on July 31, while Nigeria’s Bonny Light was assessed at $82.80/b on the same day.

Crude flows in and out of the Dangote refinery have been felt in other markets, especially in Europe, the largest consumer of light, sweet Nigerian crude. The US grade has accounted for 30% of crude delivered to Dangote, through 18 cargoes

President of Dangote Group, Aliko Dangote said the facility would broaden its feedstock sources with Libyan, Angolan, and Brazilian crude.

“The refinery was built to use Nigerian crude and add value to it within Nigeria. Why should we deviate from that focus?” said Dangote, adding that the crude supply issues were “getting resolved”, but that the refinery remained open to all opportunities “to supplement it”.

“Dangote refinery is designed to process a range of light and medium grades of crude oil, including Nigerian grades,” said Rasool Barouni, Associate Director and head of Refining at S&P Global Commodity Insights. “Other similar grades including other WAF

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Gov. Yusuf reconstitutes consumer protection council, appoints Zangina Jafaru E.S

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Nasiru Yusuf Ibrahim

 

Kano State Governor, Alhaji Abba Kabir Yusuf, has approved the composition of the Kano State Consumer Protection Council (KSCPC), to safeguard the rights and interests of consumers in the state.

KANO FOCUS reports that the newly constituted council comprises seasoned professionals, government officials, and business representatives to ensure fair trade practices and protect consumers from exploitation.

A statement by his spokesperson, Sunusi Bature Dawakin Tofa noted that the members of the council include Dr. Umar Garba Haruna, as chairman and Alhaji Zangina Jafaru serving as the executive secretary.

Alhaji Zangina Jafaru

Other key members of the council include Ibrahim Ahmad Gama (Member representing Kano Central), Hajiya Sadiya Umar Bichi (Member representing Kano North), Alhaji Hussaini Bello Gidado (Member representing Kano South) Alhaji Munzali Abubakar (Representative of business community I, Kantin Kwari Market), Ali Muhammad Adakawa (Representative of business community II, Kwanar Singa), Alhaji Ahmed Isah Chedi (Representative of business community III, Dawanau Market), and Sani Gambo (Representative of business community IV, Abubakar Rimi Market).

Others are Halima Yahuza Ahmad (Representative of the Ministry of Justice), Prof. Salisu Ibrahim Ahmad (Representative of the Ministry of Health), Aminu Gidado Yushe’u (Representative of Ministry of Environment), Bashir Shehu Gezawa (Representative of the Ministry for Local Government), Maryam Halilu Haruna, Director Special Duties, (Representative of the Ministry of Women Affairs), Bashir Uba, Director Investment, (Representative of the Ministry of Investment/Commerce), Faisal Mahmud (Representative of the Ministry of Transportation, Agency), Umar Zubairu (Representative of Special Service Directorate) and Shamsu Jibrin (Secretary/Legal Adviser.)

The Governor emphasised that the council’s primary mandate is to protect consumer rights and ensure that businesses operate under fair, transparent and lawful conditions.

He noted that the initiative aligns with the administration’s commitment to promoting good governance, market confidence and safeguarding the public from substandard products and unethical business practices.

The council members are expected to commence operations immediately, addressing consumer complaints, regulating trade practices, and fostering a healthy business environment across Kano State.

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Waiya decries poor Hausa advertisements by non-Hausa speakers

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Nasiru Yusuf Ibrahim

 

 

The Commissioner for Information and Internal Affairs, Comrade Ibrahim Abdullahi Waiya, has expressed concern over the increasing trend of non-proficient Hausa speakers advertising products in the Hausa language in a manner that distorts the message and deviates from standard Hausa.

 

KANO FOCUS reports that the Commissioner made this statement while receiving a delegation from the Advertising Regulatory Council of Nigeria (ARCON) in his office.

 

He emphasized the need for advertisements in Hausa to be crafted by native speakers to ensure clarity and effective communication with the target audience.

 

“For an advert to be well understood, it is crucial that native Hausa speakers handle its production to prevent distortion and misinterpretation,” Comrade Waiya stressed.

 

Waiya reiterated his commitment to strengthening the capacity of Information Officers in the state by ensuring their registration with relevant professional bodies. This, he noted, would enhance their effectiveness and service delivery.

 

Earlier, the Director, Northern Region, ARCON, described the Advertising Regulatory Council of Nigeria as the apex regulatory body overseeing advertising, marketing communications, and public communication practices in Nigeria.

 

He explained that ARCON operates under the Federal Ministry of Information and National Orientation with a mandate to promote ethical advertising, act as the conscience of society in commercial communications, and protect consumer interests.

 

The Director commended the Kano State Government for its support of ARCON and urged the ministry to ensure that all Information Officers in the state are registered members of the council. He emphasized that such membership would significantly benefit the officers in carrying out their duties professionally.

 

 

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Kano Gov. Yusuf, Visits Rimin Zakara to Condole Bereaved Families

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Governor Abba Kabir Yusuf has visited the Rimin Zakara community in Ungogo Local Government Area to express his condolences to the families affected by the recent demolition exercise that resulted in the tragic loss of three lives and left several others injured.

This was contained in a statement issued by the governor’s spokesperson, Sunusi Bature Dawakin Tofa, on Thursday.

During his visit, Governor Yusuf met with the bereaved graves family, offering heartfelt sympathies and announcing that the state government will sponsor the family of the three deceased victims.

He also directed the immediate settlement of medical bills for all injured individuals and provided food items to support the affected families.

In a compassionate gesture, the governor announced plans to construct a new Juma’at mosque in Rimin Zakara as sadaqatu jariya (a lasting charity) dedicated to the three departed souls.

Additionally, the governor unveiled a comprehensive development plan for the community, which includes:

• Connecting the community to the electricity grid.

• Constructing solar-powered boreholes to provide clean water.

• Establishing a primary health care centre to enhance medical services.

• Developing an access feeder road to improve transportation within Rimin Zakara.

Governor Yusuf issued a stern warning to security forces against the use of live ammunition on innocent citizens, emphasizing that such actions are unacceptable and will not be tolerated.

To ensure accountability, the governor has established an investigative committee tasked with uncovering the causes and identifying those responsible for the tragedy.

Equally, the governor has sermoned the management of the Bayero University, Kano to his office with immediate effect.

Governor Abba Kabir Yusuf has also assured the community of his commitment to resolving the over 40-year-old land dispute between Rimin Zakara community and the Bayero University Kano.

This longstanding issue has been a source of tension, and the governor emphasized his dedication to finding a lasting solution that benefits all parties involved.

During a meeting, the Rimin Zakara community leader, Baba Habu Mikail, expressed profound gratitude to the governor for his compassionate actions, stating that the community will never forget his kindness.

On his part, Chairman of Ungogo Local Government, Tijjani Amiru, commended Governor Yusuf’s swift response and described him as a leader who prioritizes the well-being of his people.

He assured the governor of the local government’s full support in implementing these initiatives and ensuring justice for the victims.

Governor Yusuf’s visit and the announced measures have brought a sense of hope and relief to the Rimin Zakara community as they look forward to healing and rebuilding in the aftermath of the tragedy.

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