Pinnacle Oil & Gas has entered a 13-year Interconnection Agreement with the Dangote Refinery, leveraging its $1 billion Petroleum Terminal to enhance petroleum distribution across Nigeria.
During a media briefing in Lagos, Robert Dickerman, the Managing Director/CEO of Pinnacle Oil & Gas Ltd, highlighted that the partnership aims to optimize distribution efficiency by using pipelines for product transfer.
According to Dickerman, this pipeline distribution strategy is significantly more cost-effective than traditional methods like shipping or trucking, promising a more efficient supply chain for petroleum products nationwide.
Stating that Dangote approved this project wholeheartedly when proposed to them, he added that, "when we proposed this project to Dangote, they wholeheartedly agreed and signed a 13-year interconnection agreement with us. In addition, Dangote facilitated our process of achieving regulatory approval by writing two Letters of No Objection to the regulator to enable our project to proceed."
Saying the optimal solution to Nigeria's energy security and pricing is a market-based solution that encourages all sources of supply, be they from local refineries, imports or any other source, he stressed that, "these suppliers must adhere to the strict specifications of the market and product must be handled safely. But the consumer should be indifferent to the source of supply, as long as the product is good quality, and the price is the lowest attainable. This solution demands competition."
The Nigerian system of distribution could be more efficient, with working products pipelines and terminals near large demand areas, but given the infrastructure we have, it works quite well, he said.