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Natural gas

Dangote Refinery Accuses PENGASSAN of Sabotaging Nigeria's Energy Supply Chain

Strategic Insights

— 2 min read

Dangote Petroleum Refinery, the world's largest single-train refinery and one of Nigeria's highest taxpayers, has accused the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) of attempting to sabotage the country's energy supply chain. The refinery issued a statement on Saturday warning that a directive by PENGASSAN to its branches to cut off crude oil and gas supplies to the refinery could plunge Nigeria back into widespread fuel scarcity and disrupt the availability of key petroleum products. The refinery stressed that PENGASSAN has no legal authority to interfere with contracts signed between the refinery and its suppliers, and described the union's actions as a "brazen display of lawlessness and criminality."

Key Takeaways:

  • Dangote Petroleum Refinery has accused PENGASSAN of attempting to sabotage the country's energy supply chain.
  • The refinery issued a statement on Saturday warning that a directive by PENGASSAN could plunge Nigeria back into widespread fuel scarcity and disrupt the availability of key petroleum products.
  • PENGASSAN instructed its members in various multinational oil companies and subsidiaries to halt crude oil loading operations and cut off gas supply to the facility "with immediate effect" on 26 September.
  • The refinery stressed that PENGASSAN has no legal authority to interfere with contracts signed between the refinery and its suppliers.
  • The union's actions have been described as a "brazen display of lawlessness and criminality" by the refinery.
  • The directive undermines investor confidence and threatens revenues accruing to federal and state governments.
  • The refinery is a strategic national asset and should be safeguarded rather than targeted.
  • The company called on the federal government and security agencies to intervene and prevent the disruption of refinery operations.
  • Compliance with the directive would cause "irreparable hardship" for households and businesses nationwide, and Nigerians are being urged to resist any attempts to disrupt refinery operations.

Statistics:

  • The Dangote Refinery is the world's largest single-train refinery.
  • The refinery is one of Nigeria's highest taxpayers.
  • PENGASSAN has instructed its members to halt crude oil loading operations and cut off gas supply to the facility "with immediate effect" since 26 September.
  • The refinery produces and supplies key petroleum products including petrol, aviation fuel, kerosene, diesel, and cooking gas.
  • The production and supply of these products would cease if the PENGASSAN directive is enforced.
  • Dangote Refinery is one of the largest contributors to the revenue purse of the Nigerian governments, both federal and sub-nationals.

Sources:

  • Statement by Dangote Petroleum Refinery on 25 September 2022
  • Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) directive issued on 26 September 2022

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