DANGOTE REFINERY, NMDPRA FACE OFF OVER PROPANE DISPUTE IN COURT

A fresh dispute has emerged between Dangote Petroleum Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority over the handling and distribution of propane, with both sides now battling the matter before the Federal High Court in Lagos. The disagreement followed a directive by the regulator to suspend propane loading and truck-out operations at the refinery, citing concerns over the quality and movement of the product.

NMDPRA told the court that its action followed investigations into alleged diversion of propane-laden trucks to unlicensed customers and claims that the product was being improperly blended at some LPG plants. The authority said laboratory tests from three plants showed propane levels above the permitted limit for LPG mixtures, prompting it to investigate the source of the product and conduct a wider reconciliation of propane supplies.

The regulator also alleged discrepancies in truck-out records involving some Dangote off-takers. According to NMDPRA, some consignments recorded as being transported to approved facilities could not be confirmed as having arrived there. It argued that the alleged diversion created safety concerns because propane has a higher vapour pressure and could pose risks if used in LPG facilities not designed to handle it.

Dangote Refinery, however, rejected the allegations and accused the regulator of exceeding its powers. The company’s spokesman, Anthony Chiejina, argued that NMDPRA officials were present at the refinery, inspected the propane and certified it before it was collected by independent buyers. He questioned why the refinery should be held responsible for what happened to the product after it had been purchased and transported away from its premises.

At Wednesday’s proceedings, NMDPRA asked the court to discharge an earlier interim order restricting it from interfering with the refinery’s operations, while Dangote’s legal team sought time to respond to the regulator’s counter-affidavit. Justice Akintayo Aluko subsequently extended the interim order, keeping it in force pending the hearing and determination of the substantive application or further direction from the court. The case file was ordered to return to the registry for assignment to the regular court, leaving the dispute over the regulator’s action, propane handling and alleged safety breaches unresolved.