Dangote refinery says PENGASSAN’S move to cut crude supply could cause fuel scarcity

Dangote refinery has accused the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) of attempting to sabotage the country’s energy supply chain following a directive issued by the union to cut off crude oil and gas supplies to the refinery.

On Friday, the association said the refinery laid off over 800 workers, noting that the group was working to “resolve” the issue.

Subsequently, the Dangote refinery confirmed sacking some workers, saying that “only a small number were affected” in what it described as a reorganisation exercise.

Following the announcement, PENGASSAN urged the management of the refinery “to recall all terminated Nigerian workers”.

Earlier on Saturday, PENGASSAN directed its members to cut gas supply to the Dangote refinery.

In response, Dangote refinery warned that the move could plunge Nigeria back into widespread fuel scarcity and disrupt the availability of key petroleum products, including petrol, aviation fuel, kerosene, diesel, and cooking gas.

The refinery maintained that such interference constitutes “economic sabotage” against both the company and the Nigerian state.

“Absolutely no law gives PENGASSAN the right to direct its branches to “cut off” gas and crude oil supplies to Dangote Refinery or at all,” the statement reads.

“There is also no law in our statute books that would support or enable the PENGASSAN branches having to “cut off” gas and crude oil supplies to Dangote Refinery or at all.

“Besides, it constitutes a criminal conduct for PENGASSAN or its members to disrupt and/or interfere howsoever in the contract between Dangote Refinery and its various vendors for the supply of gas and crude oil to the Refinery.

“Those supply contracts were not entered into with PENGASSAN; they were entered into by Dangote Refinery with third party vendors and suppliers and PENGASSAN has no right whatsoever to disrupt and/or interfere with the performance of those contracts.”

The refinery noted that PENGASSAN needs to be reminded that Nigeria operates under the rule of law.

“Our laws do not brook self-help and mob action that could introduce mayhem and chaos and easily translate into anarchy,” the plant added.

‘PENGASSAN’S DIRECTIVE PUTS GOVERNMENT REVENUE AT RISK’

Dangote refinery argued that the directive threatens revenues accruing to federal and state governments.

The statement further described the refinery as a strategic national asset that ought to be protected, not targeted.

The refinery drew the attention of the federal government, its security and law enforcement agencies, as well as other levels of government in Nigeria, to PENGASSAN’s conduct.

Dangote refinery urged the federal government and its agencies in particular to call the association to order.

The statement further criticised the union for what it called “a contradictory stance,” noting that while PENGASSAN had earlier pledged to pursue legal action against the refinery, it “abandoned the path of lawfulness and embraced mob action”.

The refiner said PENGASSAN has directed its branches “to disrupt and stop the supply of petroleum products from the Dangote Refinery to Nigerians”.

Dangote refinery stressed that it is also economic sabotage against the Nigerian state at multiple levels as the “refinery is the only refinery of its type in Africa” and ordinarily should be the pride of all Nigerians as well as the governments of Nigeria.

“It should ordinarily have special protection and status and indeed qualifies as a strategic national asset. An irreparable injury to the Dangote Refinery such as PENGASSAN has directed constitutes a national embarrassment to all of us,” the refinery said.

“The directive is a disincentive to external investors who ordinarily would have been encouraged by the success of Dangote Refinery to contemplate investing in Nigeria’s oil and gas sector or generally.”

The company urged Nigerians to resist any attempt to disrupt refinery operations, warning that compliance with the directive would cause “irreparable hardship” for households and businesses nationwide.