The Federal Government has announced plans to unveil a 15 million-litre aviation fuel depot in Lagos State on October 17, 2024.

This announcement was made by the Group Managing Director of Masters Energy and Chairperson of the JUHI-2 Board, Mrs. Patience Dappa, via a statement on Thursday.

Dappa revealed that the Joint User Hydrant Installation 2 (JUHI-2), which she described as the largest airside jet fuel depot in Nigeria, will mark a significant transformation for the nation’s aviation sector.

She disclosed that the facility will be located near Murtala Muhammed International Airport, Lagos, and will serve as a storage and supply hub for the airport and other nearby airbases.

Dappa stated, “The Nigerian aviation industry is poised for a significant transformation with the upcoming commissioning of the Joint User Hydrant Installation 2, the country’s largest airside jet fuel depot. The facility will officially open on October 17, 2024, at the JUHI-2 Facility located off the Murtala Muhammed International Airport road, Lagos.

“The depot will serve as a crucial storage and supply hub for jet fuel, ensuring a steady fuel supply to Murtala Muhammed International Airport, MMA2, MMA1, and nearby airbases.”

Meanwhile, the Managing Director/Chief Executive Officer of Eterna Plc and Chairman of the JUHI-2 Commissioning Committee, Abiola Lawal, described the facility as a state-of-the-art depot, adding that it will meet fuel demands and enhance aviation operations in the country.

Lawal revealed that the depot will be unveiled by the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, and the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri.

According to him, “This state-of-the-art depot will significantly enhance aviation operations, meeting the fuel demands of a wide range of flight activities.

“The commissioning event will be attended by key stakeholders from the aviation and energy sectors and will be officially presided over by the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, SAN, and the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri.

“JUHI-2 is a joint venture between Eterna Plc, Masters Energy, Techno Oil, Quest Oil, Rahamaniyya, Ibafon Oil, and First Deep Water Limited.

The facility spans 46,000 square meters and boasts a storage capacity of 15 million litres of Jet A1 fuel.

“Its cutting-edge design includes the latest filtration systems, the ability to load four bowsers simultaneously, a jet fuel discharge system with four dedicated trucks, a modern laboratory, and state-of-the-art fire prevention measures. The depot’s advanced operational support facilities position it as the best of its kind in Nigeria.”

The Federal Government has said all petroleum marketers can now negotiate and buy products directly from the Dangote Refinery, Lagos.

A statement by the Ministry of Finance indicated that the decision to allow oil marketers to deal directly with the refinery firm was reached at a meeting of the technical committee headed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.

The meeting was held in Abuja on Friday.

The leeway given by the Federal Government has ended the arrangement in which the Nigerian National Petroleum Company Limited (NNPCL) was acting as the sole off-taker of the Dangote Refinery products.

Edun said its decision followed the directive of the Federal Executive Council (FEC) and the implementation of the new Naira-based sales mechanism, adding that the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira, of which he chaired held its second review meeting on Wednesday, October 10, 2024.

He said the meeting focused on assessing the transition towards a deregulated market structure for Premium Motor Spirit (PMS) and addressing the change in the purchasing model for petroleum product marketers.

Giving key update on New Direct Purchase Model, the minister said the most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries, saying that this marks a departure from the previous arrangement where the NNPCL served as the sole purchaser and distributor of PMS from the refineries.

According to him, “This direct purchasing mechanism allows marketers to negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.

“Local Production of PMS: With the commencement of local PMS production, the market is better equipped to support these direct transactions. This transition is expected to enhance efficiency in product availability and stabilize market conditions for the benefit of all Nigerians.”

Edun stated that the committee recognizes that there are questions and discussions regarding this change in the market structure, adding, “We are committed to providing clarity on this development and will continue to engage with stakeholders to ensure a seamless transition process the Minister informed.”

He described the direct purchase of PMS by petroleum product marketers as a new era of growth and development for Nigeria’s petroleum industry and reassured stakeholders that the Committee will continue to provide clarity and engage with stakeholders to ensure the success of this new regime.”

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has announced plans by some investors from South Korea to build four new refineries in various parts of the country.

The minister made the announcement on Tuesday, during a summit organized by the Crude Oil Refineries Owners Association of Nigeria in Lagos.

The four refineries would have 100,000-barrel capacity each and it will be located in different locations across the country.

The Minister encouraged investors to invest in Nigeria adding that the country is committed to providing an open environment for operations.

He said, “We encourage investors to build limited refineries by providing an open environment.  A recent approval was granted to invite to Nigeria a consortium of investors from South Korea, which intends to establish four 100,000 barrels-model refineries in four different locations in Nigeria.

“We have adopted the public-private partnership model to unlock investment in the midstream and downstream segments of the oil and gas sector, which will lead to the establishment of more modular and mega refineries.”

“The Nigerian Upstream Petroleum Regulatory Commission has developed and published the domestic crude supply obligation guidelines to ensure transparency in the oil industry and ensure access to feedstock by our local refineries.

“In addition, we prioritise and work with stakeholders to ensure effective implementation of the recommendations of the Modular Refinery Committee to give special concession to local refineries’ owners, thereby guaranteeing feedstock to their refineries,” he explained.

The Minister assured the investors that the FG will ensure the deregulation of the oil sector and also put in place measures that will lighten the import on Nigerians.

He revealed plans by the government to create an apprenticeship program in collaboration with existing refineries with the goal of developing expertise in local refinery operations.

His words, “We will ensure the deregulation of the downstream sector is 100 percent and put in place a necessary framework that will ease the impact on the poor masses.

“The ministry has facilitated easier access to existing tax and other exemptions on refinery equipment importation, which is part of our plan to make Nigeria self-sufficient for petroleum producers and become Africa’s petroleum refining hub.”

“In effect, we will initiate the review of the PIA to enable this. Meanwhile, CORAN as a body should take up the campaign. Through the Petroleum Technology Development Fund and the Nigerian Content Development and Monitoring Board, we are prioritising partnerships with international institutions in knowledge transfer for manpower in refinery operations, and investment in research and development, to support technological advancements and innovation in the refining sector.

“In no distant time, we intend to create the apprenticeship programme in collaboration with existing refineries to develop expertise in our refinery operations,” he disclosed.