‘Dangote refinery commences refining petroleum in November’
Come November 30, 2023, the Dangote Refinery will begin refining petrol and diesel. Also, jet fuel operations would begin by October 2023, according to the group’s Executive Director, Devakumar Edwin.
Edwin disclosed this in an interview with S&P Global Commodity Insights on Monday, and he added 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.
Besides, Edwin stated 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 emphasised the refinery’s readiness to receive crude oil, saying, “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.”
During his interaction with S&P, Edwin made it clear that the Nigerian National Petroleum Corporation Limited had previously committed its crude oil to another entity on a forward basis, which resulted in a little delay. This explanation explained the change in the initial timeframe. The refinery would soon run solely on Nigerian crude oil starting in November 2023, he claimed, and the disruption was only temporary.
Because it is located in a free trade zone outside of Lagos, he pointed out that US dollars rather than naira will be used to pay for the Nigerian oil. Due to its equity interest, the NNPCL will deliver certain petroleum at discounted rates.
Apart from heavy Angolan grades, Edwin further stated that the Dangote refinery can process most African crudes, as well as Middle Eastern Arab Light and even US light-tight oil.
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.
“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.”
S&P also quoted Edwin as saying 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.”
In addition, 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.
Furthermore, 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.
