Dangote Refinery is gearing up to commence the production of petrol on November 30, 2023, while operations for diesel and jet fuel will kick off in October 2023, according to Devakumar Edwin, the group’s executive director.
In a recent interview with S&P Global Commodity Insights, Edwin mentioned that the refinery is on the brink of receiving its first crude cargo within two weeks, with an initial production capacity of up to 370,000 barrels per day of diesel and jet fuel by October 2023.
Edwin also emphasized the refinery’s readiness to receive crude oil, stating, “We are prepared to receive crude oil right now; we’re just waiting for the first vessel to arrive.”
Furthermore, he explained that the initial timeline shift was due to the Nigerian National Petroleum Corporation Limited committing its crude oil to another entity temporarily, but he assured that by November 2023, the refinery would solely use Nigerian crude oil.
Regarding payment, Edwin mentioned that Nigerian oil would be purchased in US dollars since the refinery is in a free trade zone near Lagos.
However, the NNPCL will supply some crude at discounted prices due to its equity stake.
Edwin highlighted the refinery’s versatility in processing various crudes, including those from Africa, the Middle East (such as Arab Light), and even US light-tight oil.
He expressed that a significant portion of the refinery’s production would cater to the country’s needs.
Surplus gasoline, meeting Euro 5 quality standards with 10 ppm sulfur content, will be exported to other African markets, the US, and South America, although the export volumes will be relatively small.
Meanwhile, jet fuel will find its way to Europe, and diesel will be available in sub-Saharan Africa.
Edwin further emphasized that the refinery’s impact on Nigeria would be substantial, as it would ensure a stable supply of eco-friendly refined products and bring in significant foreign exchange.
This refinery is expected to alleviate fuel supply challenges in import-dependent West Africa, especially after Nigeria’s removal of fuel subsidies, which led to price fluctuations and an illicit gasoline market.
Additionally, the revenues generated from the refinery’s operations will be reinvested for further development, underscoring Aliko Dangote’s commitment to Nigeria.
Edwin concluded by saying, “[Aliko Dangote] is from Nigeria, and his primary focus is always on Nigeria.