Audio By Carbonatix
Nigeria's Dangote Refinery is importing 4,000 natural-gas-powered trucks as part of plans to distribute refined products directly into the local market, the company said.
In June, the oil refinery said it will begin directly supplying fuel to retail stations, manufacturers, telecoms firms, and other large users in August, a move that could enhance supply but puts it in direct competition with local fuel traders.
Dangote's logistics expansion adds a new push to its market entry for its mammoth 650,000 barrels per day refinery, which is Africa's largest.
It said the trucks represent a 720 billion naira ($469.89 million) investment and that it will be rolled out on August 15.
Anthony Chiejina, Dangote Industries Limited's head of branding and communication, said the move will help the refinery cut logistics costs and improve supply directly to marketers.
Africa's top oil export has turned to gas as an alternative fuel after it scrapped a popular but costly subsidy on petrol that has seen pump prices rise sharply. But adoption is slow.
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