Sunbeth Energies Ltd. this week signed an agreement with 650,000 barrels per day (bpd) Dangote refinery to purchase and distribute its refined petroleum products, placing the company among a select group with direct access to the plant’s output.

For Sunbeth – a young company operating for two years – the deal marks an important milestone, allowing it to showcase its operational credibility and its ambitions to improve Nigerian fuel security by supporting local refining and distribution networks, according to The Guardian Nigeria.

Sunbeth’s managing director Lateef Abioye noted that the deal could be considered a statement of intent: “This partnership with Dangote Refinery is not just a deal, it’s a signal. It signals our continued drive to contribute meaningfully to Nigeria’s energy security and long-term economic value. At Sunbeth Energies, we are building for the future, a resilient and responsive supply system that delivers with consistency, earns trust, and serves both industries and communities nationwide,” he remarked.

He continued to say that the collaboration with Dangote would improve Sunbeth’s position in relation to national targets and would additionally improve its capacity to grow within an energy market that is consistently evolving.

Referencing the finer details of the agreement, Abioye said that Sunbeth would distribute Dangote-refined petroleum products to all its service stations across Nigeria, while ensuring that fuel would always be available to minimise the risk of supply chain issues.

Sunbeth head of retail and sales Victoria Awoniyi noted that the partnership would improve the company’s ability to serve the market “reliably and at scale”.

Dangote’s deal with Sunbeth is a positive contrast to organisations pushing against the refinery’s distribution plans, with the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) consistently criticising the plant’s goal to deliver fuel to local customers.

Resistance to the plans emerged following an announcement by the plant that it was set to expand its fuel distribution to all corners of Nigeria in June, with PETROAN’s public relations officer Joseph Obele responding shortly after that the move could lead to a monopoly in disguise – according to a Punch report at the time.

The group also added that the decision to increase distribution could potentially cause significant job losses.

The statement continued: “With a production capacity of 650,000 barrels per day, PETROAN argues that Dangote Refinery should be competing with global refineries, not operating as a distributor in the downstream sector”. PETROAN also said that the refinery, “one of the largest in sub-Saharan Africa,” was “expected to satisfy domestic fuel demand and export surplus products”.