Breaking News: NNPCL Agrees to Sell Crude Oil to Dangote Refinery in Naira
NNPCL secures a deal to supply crude oil to the Dangote Refinery in Naira, marking a significant milestone in Nigeria’s oil sector. The agreement was confirmed by NMDPRA.
The Nigerian National Petroleum Company Limited (NNPCL) has finalized an agreement to supply crude oil to the Dangote Refinery, with transactions to be conducted in the local currency, Naira. This significant development was confirmed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Tuesday via its official X account, @NMDPRA_Official.
According to the NMDPRA, this agreement marks the beginning of a new phase in Nigeria’s petroleum industry, where the NNPCL will supply crude oil directly to the Dangote Refinery, which is expected to boost local fuel production and reduce the country’s reliance on imported petroleum products.
The NMDPRA further disclosed that the Dangote Refinery is set to commence the release of its first batch of 25 million liters of Premium Motor Spirit (PMS) to the domestic market by September 2024. This supply volume is anticipated to increase to 30 million liters per day by October 2024.
“The refinery is ready to release the first batch of 25 million liters of PMS to the domestic market in September this year. This volume is expected to increase to 30 million liters per day from October 2024,” the NMDPRA announced.
This move is expected to significantly stabilize the domestic fuel market, ensuring a consistent and reliable supply of PMS, which is crucial for the country’s energy security and economic stability. The agreement to trade in Naira is also seen as a strategic decision to strengthen the local currency and reduce the pressure on foreign exchange reserves.
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