$19bn Dangote Refinery inches to commencing full production

$19bn Dangote Refinery inches to commencing full production


The $19 billion Dangote Oil Refining Company is set to commence production of petroleum products paving the way for additional jobs and foreign exchange relief to the economy. 

This follows Tuesday’s  delivery of additional one million barrels of crude to the refinery, two weeks after taking delivery of the first cargo of one million barrels. 

The first one million barrels of Agbami crude grade was purchased from Shell International Trading and Shipping Company Limited, the first of six million barrels of crude oil to be supplied by a range of suppliers.

The latest cargo, which sailed to the facility’s Single-Point Mooring (SPM) where it was discharged into the refinery’s crude oil tanks, has increased total deliveries to about two million barrels.

Experts in oil and gas, yesterday, said with this level of crude supplies, Dangote Refinery is set to start operations.

The experts believe that the coming on stream of Dangote Petroleum Refinery and Petrochemicals was a major milestone, and would make positive impact on the economies of Nigeria and West Africa.

The Executive Chairman, African Energy Chamber, NJ Ayuk, said: “We are excited to see that the Dangote Refinery has secured its  crude cargoes, this is a significant milestone, both for the country and the West African region at large.

“With a capacity to produce 350,000 barrels per day, the refinery holds particular significance for the country, where reliance on fuel imports has been a defining feature for decades, despite its over 37 billion barrels of proven reserves.”

“This cargo will see diesel, aviation fuel and Liquefied Petroleum Gas produced, followed shortly thereafter by the production of Premium Motor Spirit.

“These products will enable the country to become self-sufficient while exporting to regional neighbours.

“This, in turn, will strengthen the fiscal dynamics, putting an end to fuel subsidies, high prices and inconsistent supply, thereby setting a strong benchmark for other resource-rich countries in Africa.

“The project is designed 100% for Nigerian crude and is expected to meet 100% of the country’s demand for refined products, with surplus exported.

“This, in itself, is a testament to the instrumental role the facility will play in facilitating growth in Nigeria, enabling the country to rely predominantly on its own resources to sustain its economy.

“We commend the facility for this milestone achieved and we look forward to the first supply of Nigerian fuel products.”

Similarly, the Chairman of International Energy Services, Dr. Diran Fawibe, said it was a welcome development that would have multiplier effects, including creating additional job opportunities.

“Any oil producing country would want to allocate a share of its local production to refining and that makes the industry complete.

“The supply of crude oil to the economy used to be considered as a part of energy security, we know from history many countries went to war or influenced war against many nations simply because of importation of products to secure the supply in their country.”