Product Distribution

At VIRGIN FOREST ENERGY LIMITED, we appreciate the fact that prompt availability of refined petroleum products is key to stabilizing our markets and the economy as a whole. This is true since oil and natural gas are the lifeblood of the Nigeria economy. Together they account for more than 70 percent of the energy consumed in Nigeria. The country’s energy consumption mix was dominated by oil (53%), followed by natural gas (39%) and hydroelectricity (7 %). Coal, nuclear and other renewables are currently not part of Nigeria’s energy consumption mix, with the exception of biomass often used to meet rural heating and cooking needs. The Nigerian economy is heavily dependent on the oil sector. Petroleum products are used across the entire economy. Petrol and diesel are the primary fuels used in road transport and power generation. Therefore, adequate and reliable supply of transport services and electricity in turn are essential for economic development. Households use a variety of petroleum products: kerosene for lighting, cooking, and heating; liquefied petroleum gas (LPG) for cooking and heating; and petrol and diesel for private vehicles as well as power generation.



Even though trucking costs escalate sharply with distance, making trucking the most expensive mode of petroleum transportation, it is an option we cannot help but utilize from time to time. In however, the logistics of truck transport for high volume/long distance shipments our

trucking is generally limited to short haul movements where alternatives are often unavailable: between product terminals and retail outlets or consumers, and to small crude shipments from marginal producing areas to storage points where crude is aggregated into pipeline-size volumes for shipment to a refinery. However, despite generally being small in terms of both volume per shipment and distance, such truck movements are essential to both the completeness and the competitiveness of the overall oil distribution system.


Our policy at VIRGIN FOREST is to deploy all viable resources and maximize the effective, use of all transportation and logistics options – including pipelines, tankers, railways (when this mode eventually comes into its own in Nigeria) to get our products to our clients, and accelerate access to our ever-expanding portfolio of services.