Dangote Refinery Moves Closer To Begin Full Operations As It Receives Third Crude Shipments Of 1 Million Barrels

December 28, 2023
Dangote Refinery Boosts U.S. Jet Fuel Supply As Demand Rises

The Dangote Petrochemical Refinery has received its third consignment of one-million-barrel crude oil cargo from Shell International Trading and Shipping Company Limited (STASCO), marking a progression in its quest to commence petroleum refining in Nigeria.

“We’re more than ready and you will see our gasoline products soon,” stated Aliko Dangote in a November interview, highlighting the refinery’s commitment to kickstart operations using Nigerian crude and prioritize supplying petrol to Nigeria before venturing into exports.

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The $20 billion refinery owned by Nigerian billionaire, Aliko Dangote, is set to commence operations at 350,000 barrels per day however, it has a total of 650,000 bpd capacity. It is primed to begin production of diesel and aviation fuel by mid-January 2024, followed by Premium Motor Spirit (PMS) production.

This forward momentum is underscored by the arrival of the fourth shipment of crude, reinforcing the refinery’s momentum.

Dangote Petroleum Refinery, nestled on the outskirts of Lagos, aims to not only meet but exceed Nigeria’s demand for refined products, including gasoline, diesel, kerosene, and aviation jet fuel.

READ ALSO: Dangote Refinery Receives Additional 1Million-Barrel Crude Shipment

Moreover, it anticipates surplus production for export purposes, potentially reshaping Nigeria’s standing in the global energy market.

Despite facing delays since its announcement in 2013, the refinery’s strides indicate a more definitive trajectory. Earlier setbacks, including stalled crude oil supplies, led to public disappointment.

However, with agreements and successful cargo deliveries, the refinery appears to be back on track.

The Nigerian National Petroleum Company (NNPC), holding a 20% stake in the refinery, struck an agreement to supply six million barrels of crude oil as feedstock, signaling a moment in jumpstarting operations. This collaboration aligns with the refinery’s vision of achieving a refining capacity of 650,000 barrels per day by the end of 2024.

With its strategic location and production plans, Dangote Refinery aims not only to transform Nigeria’s energy sector but also to solidify its position as a significant player in the West African region’s energy landscape. As it inches closer to full-scale operations, the refinery’s impact on Nigeria’s energy security and global export potential becomes increasingly imminent.

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Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

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