Dangote Refinery to Commence Petrol Production by November 2023

Dangote Refinery, a game-changing project in Nigeria’s energy sector, is poised to achieve significant production milestones, according to Devakumar Edwin, the group’s executive director.

In an interview with S&P Global Commodity Insights, Edwin revealed that the refinery is scheduled to commence petrol production by November 30, 2023, with diesel and jet fuel operations set to begin in October 2023.

Edwin disclosed that the refinery is preparing to receive its first crude cargo within two weeks, marking a critical step towards its operational phase. The initial production will encompass up to 370,000 barrels per day of diesel and jet fuel by October 2023.

Highlighting the ambitious plans of Dangote Refinery, Edwin emphasized the gradual increase in petrol production, aiming to reach an impressive 650,000 barrels per day by November 30. He expressed 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.”

Edwin clarified the slight shift in the original timeline, citing that the Nigerian National Petroleum Corporation Limited had temporarily allocated their crude oil to another entity on a forward basis, causing a brief delay. However, he assured that the refinery would exclusively use Nigerian crude oil as of November 2023.

He further revealed that the Nigerian crude oil would be purchased in US dollars, not naira, as the refinery operates within a free trade zone on the outskirts of Lagos. Nevertheless, the NNPC will supply some crude at reduced prices due to its equity stake in the project.

Edwin highlighted the refinery’s versatile capabilities, stating that it can process various African crudes, Middle Eastern Arab Light, and even US light-tight oil. He noted, “We can take even some of the Russian grades… if the global system opens up to allow us to receive them.” Approximately 50% of the refinery’s production will fulfill 100% of Nigeria’s requirements.

Furthermore, Edwin outlined the export prospects, with excess gasoline meeting Euro 5 quality standards being exported to other African markets, the US, and South America. Jet fuel will find its way to Europe, while diesel will be distributed in sub-Saharan Africa.

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Describing the refinery’s significance, Edwin emphasized that it would establish a reliable supply of “environmentally-friendly” refined products and bring a substantial amount of foreign exchange into Nigeria. Additionally, the refinery is expected to play a pivotal role in addressing fuel supply challenges in import-dependent West Africa, exacerbated by Nigeria’s recent removal of fuel subsidies.

Edwin underscored that the revenue generated from the refinery’s operations would be reinvested in further developments, reflecting Aliko Dangote’s unwavering commitment to Nigeria. “The money will be coming back in, and it will go for further investments,” he stated. “[Aliko Dangote] is from Nigeria, and his focus is always on Nigeria.” Dangote Refinery is poised to be a significant contributor to Nigeria’s energy landscape and economic development.