Dangote Refinery, NMDPRA Face Off Over Propane Safety, Distribution

The Nigerian Midstream and Downstream Petroleum Regulatory Authority and Dangote Petroleum Refinery are locked in a legal dispute over the quality and distribution of propane, following the regulator’s directive to suspend propane loading and truck-out operations at the refinery.

The dispute came before the Federal High Court in Lagos on Wednesday, where the NMDPRA asked the court to discharge an interim order preventing it from enforcing the suspension.

Dangote Refinery, however, accused the regulator of abusing its powers and maintained that propane leaving its facility had already been inspected and certified by regulatory officials.

The court had on August 31 restrained the NMDPRA and its representatives from shutting down, restricting access to or disrupting operations at the refinery pending the determination of the substantive application.

The regulator, through its counsel, Matthew Burkaa, argued that the interim order was obtained through alleged misrepresentation and suppression of material facts. It also challenged the court’s jurisdiction to grant the order.

At the centre of the dispute are allegations concerning the movement and blending of propane supplied to Liquefied Petroleum Gas operators.

According to the NMDPRA, its investigation began after laboratory tests on LPG samples obtained from three plants — Selai, Tewa and Ameego Pago — allegedly showed propane content exceeding 50 per cent.

The regulator said industry requirements stipulate that propane should account for no more than 20 per cent of an LPG blend, with butane making up about 80 per cent.

Representatives of the affected plants reportedly identified Sublime Oil and Gas Limited, an off-taker from Dangote Refinery, as their source of propane.

The development prompted the NMDPRA to conduct a wider reconciliation and material-balance exercise involving propane producers and LPG-blending facilities.

The regulator also alleged that its officials were denied access when they attempted to inspect propane-loading operations and records at the Dangote Refinery on August 24.

Following the investigation, the NMDPRA issued a notice of potential non-compliance and directed the refinery to suspend propane loading and truck-out operations pending further investigation and the implementation of additional safety measures.

The regulator further alleged that its review of truck-out manifests revealed discrepancies in the movement of propane.

According to the NMDPRA, Sublime Oil and Gas lifted 25 trucks of propane on August 20 and 22 for delivery to Navgas/Agasco, but Navgas reportedly confirmed receiving only six trucks, leaving 19 consignments unaccounted for.

It also alleged that another off-taker loaded 52 trucks between May and August 2026 for delivery to Navgas, but the company reportedly confirmed that none of the consignments was received.

The NMDPRA argued that any diversion of propane to unauthorised or unlicensed customers could create significant safety risks, particularly if the product is used for LPG blending outside approved standards.

The regulator also claimed that propane produced by Dangote and other gas-processing facilities had a vapour pressure of about 13 bar, compared with a maximum of seven bar for the standard propane-butane LPG mixture.

It warned that higher-pressure propane could create explosion risks at LPG refilling facilities not designed to handle such pressure.

Dangote Group, however, rejected the regulator’s position.

Its spokesman, Anthony Chiejina, argued that NMDPRA officials stationed at the refinery had inspected and certified the product before it was released to independent buyers.

“We have NMDPRA staff there in the refinery. They inspected and certified the product as okay,” Chiejina said.

He argued that once an independent off-taker purchased the product and transported it using its own trucks, Dangote Refinery should not be held responsible for where the product was subsequently taken or how it was handled.

Chiejina consequently described the regulator’s attempt to sanction the refinery over activities occurring after the product had left its facility as an abuse of regulatory power.

At Wednesday’s proceedings, counsel for Dangote Refinery, Wale Akoni, SAN, requested an adjournment to respond to a counter-affidavit filed by the NMDPRA, saying he had only received the document in court that day.

The regulator did not oppose the request but stressed the urgency of the case because of the safety concerns it had raised.

Justice Akintayo Aluko, who was sitting as a vacation judge, said he could not fix a new hearing date because the court’s annual vacation was due to end on Friday.

The judge subsequently directed that the case file be returned to the registry for reassignment to a regular court by the administrative judge.

Justice Aluko also extended the interim order preventing the NMDPRA from interfering with the refinery’s operations pending the hearing and determination of the substantive application or a further directive from the court.

The order means the regulator remains restrained from shutting down or otherwise disrupting the refinery’s operations while the substantive dispute over propane quality, distribution, regulatory oversight and the alleged diversion of trucks awaits determination.