The Dangote Refinery, Africa’s largest oil refinery, is set to begin refining petrol by November 30, 2023, and diesel and jet fuel operations by October 2023, according to the group’s executive director Devakumar Edwin.
In an interview with S&P Global Commodity Insights on September 19, 2023, Edwin said that the refinery would receive its first crude cargo in two weeks’ time and would begin producing up to 370,000 barrels per day of diesel and jet fuel in October 2023.
Furthermore, Edwin pointed out that the refinery would initiate a gradual increase in petrol production, aiming to reach an impressive 650,000 barrels per day by November 30. He emphasized the refinery’s readiness to receive crude oil, stating, “Right now, I’m ready to receive crude. We are just waiting for the first vessel. And so, as soon as it comes in, we can start.”
Shift in the Original Timeline
Edwin explained that the original timeline had been shifted slightly due to the fact that the Nigerian National Petroleum Corporation Limited (NNPCL) had already committed their crude oil to another entity on a forward basis. However, he assured that this was a temporary delay and that the refinery would soon run exclusively on Nigerian crude oil as of November 2023.
Crude Oil Supply
Edwin noted that the Nigerian oil would be purchased in US dollars, and not naira, because it is in a free trade zone on the outskirts of Lagos. However, the NNPCL will supply some crude at knockdown prices due to its equity stake in the refinery.
Types of Crude Oil
Edwin further stated that, aside from heavy Angolan grades, the Dangote refinery can process most African crudes, as well as Middle Eastern Arab Light and even US light-tight oil.
Production Profile
He said, “We can take even some of the Russian grades… if the global system opens up to allow us to receive them. Basically, if you look at our production profile, 50% of my production will meet 100% of the requirements of the country.”
Product Exports
Excess gasoline – which will be 10 ppm sulfur Euro 5 quality — will be exported to other African markets as well as the US and South America, although the volumes will be relatively small. Meanwhile, jet fuel will be exported to Europe and diesel will be sold in sub-Saharan Africa.
Benefits of the Dangote Refinery
Edwin said that the refinery would be “enormously beneficial to the country” by establishing a reliable supply of “environmentally-friendly” refined products and bringing “a huge amount of foreign exchange into the country.”
Furthermore, Edwin noted that the refinery would play a pivotal role in alleviating the fuel supply challenges faced by import-dependent West Africa, worsened by Nigeria’s recent removal of fuel subsidies, which had led to a thriving illicit gasoline market due to price fluctuations.
Additionally, he added that the revenues generated from the refinery’s operations would be reinvested to fuel further developments, underscoring Aliko Dangote’s commitment to Nigeria.
The Dangote Refinery is a major investment in Nigeria’s oil and gas sector. It is expected to create jobs, boost the economy, and reduce the country’s reliance on imported refined products. The refinery is also expected to have a positive impact on the fuel supply situation in West Africa.
The start of petrol refining at the Dangote Refinery in November 2023 is a significant milestone. It is a testament to the hard work and dedication of the Dangote Group and its partners. It is also a sign of Nigeria’s commitment to developing its own oil and gas resources.
The Dangote Refinery is a major step forward for Nigeria’s oil and gas sector. It will help to reduce the country’s reliance on imported refined products and save the government billions of dollars in foreign exchange. The refinery will also create jobs and boost the economy.
The refinery is also expected to have a positive impact on the fuel supply situation in West Africa. It will help to reduce fuel shortages and make fuel more affordable for consumers.
The Dangote Refinery is a significant investment in Nigeria’s future. It is a testament to the country’s commitment to developing its own resources and improving the lives of its citizens.
