Pinnacle’s petroleum offtake facility: First off-shore petroleum terminal in Lekki, at a glance

Oredola Adeola

The $1bn world-class/ultra-modern purpose-built products intake, storage, and off-take facility owned by Pinnacle Oil & Gas  Limited is the first off-shore petroleum products terminal to be situated in the Lekki Free Zone.EnergyDay’s check showed that the terminal was conceptualised with the idea of serving as a  petroleum terminal with the capacity to handle products in two directions both import and export.

It was also established to enable the direct delivery of petroleum products from large vessels which would otherwise have been unable to berth all the various coastlines across Nigeria.

The facility was dedicated to eliminating the need for expensive vessel lightering and sub-optmisation issues in Nigeria’s downstream sector, reducing multiple handlings in receiving products from mother vessels using daughter vessels often leading to demurrage, reducing about N5 billion daily loss in revenues due to the lightering operations typically associated with Apapa Port.

The facility currently has  a Conventional Buoy Mooring (CBM) Facility with 16km of 16inch subsea products pipeline network, and loading gantries system with the ability to truck out 20 million litres per day.

The facility has the capacity to enable the emptying of mother vessels within just two days, instead of the 32  days required to do a minimum shuttling in the Apapa terminal.

The shore tank farm is currently able to handle up to 300 million litres of Premium Motor Spirit (PMS) as well as diesel or Automotive Gas Oil (AGO), and the facility is designed to permit rapid discharge into trucks for evacuation at a rate of up to 20 million litres per day.

EnergyDay gathered that the Pinnacle is about to reach a deal with the Dangote group, in the area of complementing the operations of the nearby Dangote refinery which is scheduled to come on stream in 2023.

In a video message at the inauguration of the facility at the Free Trade Zone in Lekki, Lagos on Saturday, President Muhammadu Buhari said that the traffic congestion created by petroleum product trucks in the Apapa area of Lagos state was a major challenge faced by his administration in the last seven years.

The President described the investment as a demonstration of the success of his administration’s agenda to transform the nation’s economy, adding that the government looks forward to many more investments of this magnitude.

The President said, “Production of multiple energy streams is one of the major goals of this administration, and we have identified that the congestion at Apapa Road is such that it has been hampering major development in the country.

“Therefore, the birth of the Pinnacle Petroleum product terminal will not only add to our sources of energy, it will also ease traffic congestion at Apapa, thereby increasing development and opportunities in and around the facility.”

‘We provided targeted support to the energy industry by providing an enabling environment, including regulatory facilitation, to ensure investment in critical infrastructure.
”I am happy today that Pinnacle Oil and Gas limited leveraged the opportunities and established this massive terminal facility.
”I am happy to also note that further expansion works which are starting will further provide incremental value, especially more employment to our teeming youth population.
”The success of our agenda to transform our country is clearly demonstrated by this massive investment and the obvious contributions it has made to our overall economic well-being.”
He revealed that the company is already in advanced conversations with the Dangote group regarding collaborations to complement the operations of the nearby Dangote refinery which is soon to come on stream, with a view to forming the nucleus of what will become Africa’s largest energy logistics hub.
President Buhari promised continued support and encouragement for investors to take advantage of the ongoing reforms in the oil and gas sector as enshrined in the Petroleum industry Act and replicate the feats achieved by Pinnacle Oil and Gas limited.Babajide Sanwoolu, Governor of Lagos State while commended Pinnacle Oil and Gas for initiating what he described as a massive industrial dream,  which is part of the company’s commitment to ‘Fueling Nigeria’.

He said, “The Lekki FTZ is Nigeria’s most active and vibrant Free Trade Zone, and it embodies what Lagos represents. Which is vision, commitment, and an enduring spirit of excellence; this is what we have always stood for.

“Pinnacle oil’s Petroleum Products Terminal has been designed to make possible the direct transfer of petroleum products from large vessels, through its Conventional Buoy Mooring (CBM) and Single Point Mooring (SPM) facilities.
“What this means is that vessels as large as between 90,000 Dead Weight Tons (DWT) and 150,000 DWT can conveniently berth here, and discharge their products efficiently, with minimal turnaround time.
“In addition, this facility can store up to 300 million litres of refined Petroleum Products. By all standards this is an impressive facility, built to the highest standards available anywhere in the world,” the Lagos State Governor said.
He however noted that the facility was being positioned to serve the export market across West Africa, cementing Lagos’ place as the prime hub for commerce and logistics in West Africa.Mele Kyari, Group Chief Executive Officer, Nigerian National Petroleum Company Limited, (NNPCL) said the terminal is a relief to the delivery of petroleum products in Lagos, which he described as the largest consumer of petroleum products in the country.

According to him, whenever there is a crisis of petroleum products in Lagos, the NNPCL is always concerned.
He said, “Without mincing words, this is the largest exit point for petroleum products that we have today and it has clearly demonstrated capacity by easing delivery of petroleum products to many parts of the country and whenever we are in difficult situations.
The GCEO of NNPC noted that the new facility will always serve as the exit point that will work for us in recent times, anytime there is a shortage of the product in the country.Engr. Farouk Ahmed, Chief Executive, Nigerian Midstream Downstream Petroleum Regulatory Authority(NMDPRA)  pledged support for private investment in the Midstream and Downstream Petroleum sector.

He described the Pinnacle facility as another milestone achievement in the history and strategic development of Nigeria’s Oil and Gas Industry while assuring all stakeholders that the NMDPRA was committed to boosting private investment,  enhancing the ease of doing business thereby leading to job creation, economic growth and development of the country.

He said, “The Pinnacle Lekki petroleum products Terminal is an ultra-modern purpose-built petroleum products intake, offtake, and storage facility that has in effect improved the efficiency of the Nigerian downstream industry by eliminating the need for expensive vessel lightering, reducing the incidence of demurrage for visiting mother vessels, reducing the typical out turn losses which typically occur during lightering operations etc.

“All of these have resulted in significant savings for vessels berthing at the Terminal as opposed to berthing at any of the other mooring facilities in the Lagos area,” the ACE said.

Mr. Peter Mba, Chief Executive Officer of Pinnacle Oil and Gas Limited, in his statement at the launch of the facility said that the conventional operations of moving petroleum products from ships to tank farms were suboptimal involving a lot of multiple handling.

He said, “The procedures have been very inefficient, bringing in cargoes in large tankers, keeping that large tanker in the middle of the sea, and then going with shuttle vessels to lighter (tranship) from the large tanker because we couldn’t take the large tanker to the port due to shallow draft restriction.

“With the new infrastructure, the operation now takes just two days, because you just connect the mother vessel to our terminals directly.

“So it reduces the demurrage cost the industry was incurring on the mother vessel and the cost of hiring the shuttle vessel,” Mba said.

The PINNACLE CEO however noted that the terminal is supported by the world-class services of the Lekki Free Zone Development Company in areas of services like power supply and truck traffic management.

According to him, the location enables easy access and ingress, allowing trucks from our terminal to service the rest of the country without any need to traverse the Lagos metropolis in the future.