By Milcah Tanimu
The Dangote Petroleum Refinery is gearing up to commence the production of Automotive Gas Oil (diesel) and JetA1 (aviation fuel) in January 2024. However, the production of Premium Motor Spirit (petrol) is experiencing delays due to the gradual supply of crude oil.
The refinery, with a capacity to process 650,000 barrels of crude oil per day, requires a minimum of six million barrels to initiate full-scale production of refined products, including diesel, petrol, aviation fuel, and kerosene. Last week, the facility received one million barrels of crude oil, with the remaining five million barrels expected in five separate installments.
Situated in the Dangote Industries Free Zone in Ibeju-Lekki, Lagos, the $20 billion refinery project is a subsidiary of Dangote Industries Limited.
Despite the earlier commitment by the Nigerian National Petroleum Company Limited to provide six million barrels of crude oil to the Dangote Refinery, only one million barrels have been received to date. The refinery confirmed the receipt of crude oil from Shell International Trading and Shipping Company Limited, emphasizing that this initial supply would lead to the production of diesel and aviation fuel.
According to an unnamed source from the company, the one million barrels are insufficient for full-scale production, and the facility will require six installments to reach the necessary quantity. Consequently, the refinery expects to produce diesel and aviation fuel in January, followed by petrol and other refined products as additional crude cargoes are acquired.
The Dangote Refinery aims to play a crucial role in alleviating fuel supply challenges in Nigeria and West African countries. The facility, designed to process 100 percent Nigerian crude, has the flexibility to handle other crude types, making it a significant player in the region.
The refinery’s impact extends beyond production, with plans for employment generation, indirect job creation, and a potential annual market worth $21 billion for Nigerian crude. Additionally, the facility boasts a self-sufficient marine infrastructure, a power plant with a capacity of 435 megawatts, and a commitment to environmental sustainability through carbon capture technologies and other initiatives.
Prominent businessman Femi Otedola congratulated Aliko Dangote and described the refinery as a beacon of hope, praising its role in championing energy security and environmental sustainability. The refinery’s commencement of production is expected to usher in a new era of prosperity for the subcontinent, according to Otedola.