…Sulphur content for PMS and AGO is 50ppm including other specified products
-Felix Douglas
The Major Energies Marketers Association of Nigeria (MEMAN), recently had a webinar with the theme: The Future of Petroleum Product in Nigeria.
The webinar brought key stakeholders together to discuss significant critical issues that move the sub sector of the downstream industry.
Dr. Mustafa Lamorde of Health, Environment, and Community at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), represented Authority Chief Executive, Engr. Farouk Ahmed and he spoke about regulatory requirements and enforcement of petroleum product standards, challenges, monitoring and compliance.
Dr. Lamorde explained further that the issue of high quality petroleum product is essential for safeguarding public health, environment and maintaining engine performance and preventing corrosion to systems. Most importantly, the sustainability of the industry itself as the world is moving into cleaner fuel. The importance of relevance of petroleum fossil fuel will still be part of the energy mix. However, to maintain relevance, there is need to clean up the system.
He added that cleaning the system means from processes down to the final products. High quality petroleum product is part of roadmap to sustainability. The key petroleum products consume in Nigeria is basically Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) or Dual Purpose Kerosene (DPK) and lubricants.
The key regulatory agency responsible for ensuring quality of petroleum products basically is NMDPRA which by the Petroleum Industry Act (PIA), has been empowered and mandated to ensure compliance. The Authority collaborates and works together with Standard Organisation of Nigeria (SON) to set standards. There is widely collaboration with the industry in enforcing this standard.
Regulatory Frame Work
Dr. Lamorde noted that PIA 2021 mandates and empowers NMDPRA to ensure quality of petroleum products throughout the value chain. Section 32 of the Act empowers the Authority to establish and provide data storage with testing quality assurance certification of crude oil, natural gas and petroleum products.
NMDPRA regulates activities of third party laboratories used in the midstream and downstream petroleum operations.
The Authority also activates and gives approvals for third party laboratories that operate services to the industry. Section 32 issues state of quality whenever any product is being imported refined locally in Nigeria before it goes out to the market along the value chain. The Authority is responsible by the provision of Section 32 to monitor and ensure quality of petroleum products sold in Nigeria conforms to specification.
The coming on board of Dangote and four national refineries with the passage of PIA supersedes every other regulation because it sets up regulatory agencies and also mandates objective their functions.
Section 317, subsection 11 of the PIA clearly explains that all imported petroleum products shall conform to a stipulated specification.
Speaking further Dr. Lamorde said the key parameter is sulphur content of 50ppm for both PMS and AGO including other specified products. NMDPRA is still working with SON to review 2017 standard.
In conjunction with stakeholders and ensuring petroleum quality products requires a balance between pricing, security of supply and availability. NMDPRA has been working with key marketers who are members of MEMAN to ensure that specification and timeline was made in conformity with the provisions of PIA.
As at September 2024, Dr. Larmode revealed that all imported petroleum products coming into Nigeria adhered to 50ppm which is in conformity with provision of PIA. The Dangote refinery is designed to produce ultra low sulphur and it is conforming to 50ppm content.
Four local national refineries have been undergoing maintenance and NMDPRA discussed with stakeholders involved to make sure part of the maintenance they need to incorporate provision of a sulphurization unit. Modular refineries had been asked to upscale 50ppm. The push for a cleaner fuel is not local but a global campaign.
All regional bodies have own specification in convergence to global best practice of attaining sulphur content.
Role of NMDPRA
Basically, the Authority is mandated to ensure both technical and operational activities and infrastructural development within the midstream and downstream in a safe environmentally friendly and sustainable manner. The Authority oversees issuance of licensing, regulatory guidelines to ensure compliance. Non compliance attracts severe penalty.
Dr. Lamorde said one of the ways to ensure compliance and enforcement of petroleum products, is to ensure that process meets required standard from value chain right from the point of import.
At the point of import, certificates of both quality and product get to the source and they will be sent to NMDPRA for review. Upon arrival before offloading the vessel, the Authority takes samples and conducts tests to make sure products conform to required specification. Products move to loading depots after it has undergone laboratory tests to check adulteration. Same is applicable to local refineries. Products are supposed to be transported through pipelines. But due to conditions of the pipelines, virtual means are used to transport petroleum products.
NMDPRA has laboratories in nine locations across the country, and there are plans to upgrade them to ensure that the equipments are calibrated. The Authority gives room for staff training to utilize digitalization for transparent processes.
Challenges
Dr. Lamorde pointed out that in conducting and ensuring compliance with petroleum products, there are challenges. One of the challenges is proliferation of illegal refineries across the country including activities of unlicensed refining products produced locally with low sulphur content. Vandalization of pipelines which limit transportation capacity and process of transporting these products by petroleum tankers requires long distance. These products are susceptible to adulteration, contamination and other degrading factors.
Way forward
Ensuring and strengthening regulatory framework through enforcement is key. If there is proper awareness and collaboration with key stakeholders across the value chain helps in adhering to the limit.
Stakeholders will be able to work together and achieve common objective. It will strengthen regulatory framework in place. Capacity building with advanced monitoring technology cannot be ruled out.
Approvals for service are being digitalized with increased product testing capabilities, public awareness and consumer protection. NMDPRA is working with the Consumer Protection Council to set up consumer complainer and whistle platform. Part of the Authority legal framework is to ensure that petroleum products get to its finality to meet requirement.
Collaboration with stakeholder engagement, enforcement of quality standards, promoting use of finances with security agencies to tackle trans boarder threat are part of ways forward for NMDPRA.
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