Pinnacle Oil clarifies pipeline deal with Dangote refinery, says market-based system solution to pricing

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Pinnacle Oil and Gas Limited has provided clarification on its pipeline connection agreement with Dangote Petroleum Refinery, calling for collaboration among industry players to curb the distribution of substandard petroleum products.

Robert Dickerman, chief executive officer of Pinnacle Oil and Gas Limited, at a news conference in Lagos on November 7, 2024

“Pinnacle Oil & Gas built a revolutionary terminal in Lekki Free Zone at great expense for the benefit of far greater efficiency in the distribution of petroleum products throughout Nigeria,” he said.“Prior to the Pinnacle terminal, all imported cargo had to be transferred to smaller vessels due to the shallow draft restrictions across Nigerian ports.

“In our effort to further enhance distribution efficiency, we proposed and invested in pipelines to distribute petroleum products from the Dangote Refinery, as pipeline transfer is far less costly than distribution by ship or trucking across the country.“When we proposed this project to Dangote, they wholeheartedly agreed and signed a 13-year interconnection agreement with us.

He said the suppliers must adhere to the strict specifications of the market and the 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.

 

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