Latest news with #CompressedNaturalGas
Business Insider
4 days ago
- Business
- Business Insider
How Dangote's 4,000 CNG trucks could reshape fuel supply in Nigeria
On August 15, Dangote Refinery will send out a fleet of 4,000 Compressed Natural Gas tanker trucks. With over 100 new CNG refuelling hubs, the idea is to deliver petrol and diesel straight from the refinery to retailers, manufacturers, telecoms, and airports. But this isn't just a publicity stunt. It's a smart move designed to cut costs and change fuel logistics in Nigeria. Dangote Refinery plans to deploy 4,000 CNG tanker trucks starting August 15. CNG truck implementation is anticipated to cut logistics expenses and stabilize fuel prices. While concerns about monopolization persist, supporters believe market efficiency will benefit consumers. What's driving this Dangote's refinery is running at about 85 per cent of its 650,000-barrels-per-day capacity, making it one of the world's largest single-train facilities. That size matters. A larger operation means a lower cost per barrel. Now, introduce CNG trucks, which are roughly 40 per cent cheaper to run than standard diesel tankers. When you combine those two, you eliminate a significant portion of the usual logistics markup that is factored into pump prices. Nigeria's downstream sector has been deregulated for years. Prices respond to global crude oil prices, exchange rates, and transportation costs. By taking control of the whole chain from refinery to delivery, Dangote can potentially pass on savings directly to customers and bulk buyers. Some voice worries about it being a monopoly. But there are now nine modular refineries in operation alongside the national NNPC. And registration is open to new entrants. Dangote is smart about using vertical integration to stay competitive, rather than shutting others out. Why it matters now Oil prices have been volatile. Brent crude has jumped from around $64 to $77 a barrel due to rising tensions in the Middle East. And Goldman Sachs warned that it could climb to $100 to $110 if things worsen in the Strait of Hormuz. Usually, that would drive up prices for Nigerian consumers. Dangote's logistics buffer could help prevent pump prices from spiking past ₦1,000 per litre. Although full details haven't been made public, sources indicate that early deployment will prioritise major commercial hubs, such as Lagos, Abuja, Port Harcourt, Kano, and Onitsha. The 100+ CNG refuelling stations are expected to roll out in stages, starting alongside the truck deployment in August and continuing through early 2026. This infrastructure will be critical. Without a strong network of refuelling hubs, truck efficiency could be hampered. However, Dangote's investment reportedly falls within the $250–280 million range for trucks and stations, showing a serious commitment to making it work. What people are saying The reaction from independent fuel marketers has been mixed. While some see opportunity in cheaper supply, others feel threatened. PETROAN (Petroleum Products Retail Outlets Owners Association of Nigeria) has warned that the direct delivery model may 'wipe out' smaller players who rely on older, more costly supply chains. Many worry about job losses, increased consolidation, and an eventual squeeze on competition. Yet, Dangote's supporters argue that he's simply making the system more efficient. 'If other players can't compete, that's not his fault,' one industry observer told us. 'This is what deregulation is supposed to look like.' So far, the federal government has not issued a formal response to Dangote's CNG rollout. However, there's speculation that regulators may need to intervene if competition concerns escalate. They could establish new guidelines for downstream market conduct or offer incentives to assist other players in transitioning to CNG. There's also an expectation that the government may publicly endorse the environmental angle, since reducing diesel reliance aligns with Nigeria's climate goals. What it all boils down to For you at the pump: Expect more stable or possibly lower prices, despite global oil volatility. For factories and telecoms, fuel is a significant portion of their energy budget. Cutting delivery costs frees up resources for lower production costs. For smaller fuel players: They'll need to innovate, partner up, or risk being squeezed out. For the economy: lower fuel costs could translate to increased production, higher employment, and additional tax revenue for government coffers. Final takeaway Dangote is using its scale and control over transportation to beat inefficiencies. He knows that if logistics costs decrease at the pump, his market share and profits will increase. The big test starts August 15. Will consumers see the savings on their receipts? Will rural areas get the same fuel price as Lagos? And can smaller operators find a way to keep up?
Hindustan Times
5 days ago
- Automotive
- Hindustan Times
Auto recap, June 23: Tata Harrier EV price list, Audi Q7 Signature Edition, Mercedes-Benz EV strategy & more…
Here is your quick check on the biggest developments in the world of automobiles. (Mohd Nasir for HT Auto) Notify me The automotive sector is undergoing swift transformations, making it challenging to keep up with all the recent developments. At HT Auto, we are committed to providing the most pertinent and up-to-date information as it emerges. Presented below is a brief summary of the main highlights from Monday, June 23. Tata Harrier EV RWD full price list out, top variant priced at ₹ 27.49 lakh The price list of the Tata Harrier EV rear-wheel-drive (RWD) models has been announced. While the new flagship electric SUV from Tata Motors starts at ₹ 21.49 lakh, it tops out at ₹ 27.49 lakh for the RWD variants. All the prices are ex-showroom. The Harrier EV was launched on June 3, 2025, and the bookings for the vehicle will commence from July 2. The Harrier EV is available across five trim levels for the RWD powertrain option - Adventure 65, Adventure S 65, Fearless+ 65, Fearless+ 75 and Empowered 75. Also Read : Tata Harrier EV RWD full price list out, top variant priced at ₹ 27.49 lakh Audi Q7 Signature Edition launched in India at ₹ 99.81 lakh The Audi Q7 Signature Edition has been launched in India with a starting price of ₹ 99.81 lakh, ex-showroom. Earlier in the month, Audi India had also launched the Audi A4 Signature Edition. The company stated that only a limited number of units of the Audi Q7 Signature Edition will be offered. Also Read : Audi Q7 Signature Edition launched in India at ₹ 99.81 lakh. Check details Mercedes-Benz rethinks EV plans, will retain combustion engines due to slower adoption In a major strategic pivot, Mercedes-Benz has become the latest in a long list of traditional automakers reassessing their lofty electric vehicle (EV) goals. "We will keep building combustion engines well into the 2030s, longer than originally envisaged," confirmed company CEO Ola Kallenius recently, as global EV uptake lagged behind expectations. Also Read : Mercedes-Benz rethinks EV plans, will retain combustion engines due to slower adoption CNG poised for significant growth as India focuses on EV transition Compressed Natural Gas (CNG) has been finding an increasing number of takers in the Indian passenger vehicle market as a key alternate fuel solution. While the focus of the industry players, as well as government and policymakers, remains on electric mobility, the adoption of CNG as a cleaner fuel has also been thriving over the last few years. Now, multiple studies have projected that the growth of CNG as an auto fuel could continue in India. Also Read : CNG poised for significant growth as India focuses on EV transition Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 24 Jun 2025, 06:58 AM IST
Business Insider
15-06-2025
- Business
- Business Insider
Dangote refinery to kick off nationwide fuel distribution
Dangote Petroleum Refinery has announced a major fuel distribution initiative set to begin on August 15, 2025, aimed at transforming Nigeria's downstream petroleum sector. Dangote Petroleum Refinery announced a fuel distribution initiative starting August 15, 2025. The program aims to supply PMS and diesel across Nigeria to various sectors, including energy and aviation. To remove logistical challenges, the company will provide complementary logistics support to buyers. Dangote Petroleum Refinery has announced a major fuel distribution initiative set to begin on August 15, 2025, aimed at transforming Nigeria's downstream petroleum sector. 'Effective 15th of August 2025, the Refinery will begin the distribution of Premium Motor Spirit (PMS) and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users across the country, with free logistics to boost the distribution network,' the refinery said in a statement on X. To eliminate logistics bottlenecks and reduce distribution costs, the company offers free logistics support to fuel purchasers as part of the programme. This move is expected to significantly lower fuel costs, especially for key sectors, and ease inflationary pressure. To support the smooth rollout, Dangote Refinery has invested in 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers. The company is also building CNG refuelling infrastructure across the country, supported by a fleet of over 100 additional CNG tankers to ensure seamless product movement. Credit support for high-volume purchases The refinery, the world's largest single-train refinery, also announced a credit facility for high-volume buyers. Those purchasing a minimum of 500,000 litres will qualify to receive an additional 500,000 litres on credit for two weeks, backed by a bank guarantee. In a statement released by the company, Dangote Refinery described the initiative as a 'strategic programme' aligned with its commitment to enhancing energy efficiency, promoting sustainability, and driving inclusive economic growth.
Hans India
13-06-2025
- Business
- Hans India
Big push to oil & gas infra in last 11 years
New Delhi: Minister of Petroleum and Natural Gas, Hardeep Singh Puri, on Thursday said that over the last 11 years, India's oil and gas sector has expanded steadily, from building modern refineries and pipelines to securing reserves and promoting cleaner fuels as part of the infrastructure revolution that is taking place in the country. The minister said, 'Infrastructure has been central to India's growth story under the leadership of Prime Minister Narendra Modi and these efforts in the oil and gas sector have strengthened the country's energy security and laid the foundation for a self-sufficient future.' Highlighting the infrastructure milestones in the oil and gas sector, Puri said that the country now has 23 modern operational refineries with a total capacity of 257 million metric tonnes per annum to produce petroleum products such as petrol, diesel, jet fuel and LPG The Piped Natural Gas (PNG) infrastructure that provides green cooking fuel to household kitchens in the country has been expanded to cover 733 districts across the country. Besides, Compressed Natural Gas (CNG) for fuelling vehicles is being provided across 8,000 retail stations to consumers nationwide. The minister also underlined that E20 ethanol blended petrol was now being made available for vehicles at all the retail outlets nationwide. He further stated that the Ministry's Compressed Bio-Gas (CBG) initiatives have resulted in the setting up of 106 plants with the combined capacity of 625 TPD. The minister also highlighted the ministry's initiative in setting up storage facilities for strategic petroleum reserves, on which the country can fall back in times of emergency and which assume importance during times of geopolitical reserves can also be dipped into at times when global prices skyrocket to provide a cushion to the national oil companies. The minister mentioned that the storage capacity at Pudur is 2.25 million metric tonnes (MMT), the Visakhaptnam facility has the capacity to store 1.33 MMT of crude oil while Mangalore has a storage capacity of 1.5 MMT.
Time of India
12-06-2025
- Business
- Time of India
Big push to oil & gas infra in last 11 years has strengthened India's energy security: Puri
New Delhi: Minister of Petroleum and Natural Gas, Hardeep Singh Puri , on Thursday said that over the last 11 years, India's oil and gas sector has expanded steadily, from building modern refineries and pipelines to securing reserves and promoting cleaner fuels as part of the infrastructure revolution that is taking place in the country. The minister said, "Infrastructure has been central to India's growth story under the leadership of Prime Minister Narendra Modi and these efforts in the oil and gas sector have strengthened the country's energy security and laid the foundation for a self-sufficient future." Highlighting the infrastructure milestones in the oil and gas sector, Puri said that the country now has 23 modern operational refineries with a total capacity of 257 million metric tonnes per annum to produce petroleum products such as petrol, diesel, jet fuel and LPG The Piped Natural Gas (PNG) infrastructure that provides green cooking fuel to household kitchens in the country has been expanded to cover 733 districts across the country. Besides, Compressed Natural Gas (CNG) for fuelling vehicles is being provided across 8,000 retail stations to consumers nationwide. The minister also underlined that E20 ethanol blended petrol was now being made available for vehicles at all the retail outlets nationwide. He further stated that the Ministry's Compressed Bio-Gas (CBG) initiatives have resulted in the setting up of 106 plants with the combined capacity of 625 TPD. The minister also highlighted the ministry's initiative in setting up storage facilities for strategic petroleum reserves , on which the country can fall back in times of emergency and which assume importance during times of geopolitical uncertainty. These reserves can also be dipped into at times when global prices skyrocket to provide a cushion to the national oil companies. The minister mentioned that the storage capacity at Pudur is 2.25 million metric tonnes (MMT), the Visakhaptnam facility has the capacity to store 1.33 MMT of crude oil while Mangalore has a storage capacity of 1.5 MMT. Besides, another strategic reserve facility is being built at Chandikhol, which is also on the sea coast. He also underscored that the public sector oil marketing companies have set up six skill development institutions which have already succeeded in skilling as many as 16,000 professionals so far. --IANS sps/rad
