Emmanuel OchayiThe Dangote Refinery, Africa’s largest, is set to commence the export of diesel meeting European standards in June, alongside the introduction of gasoline into the Nigerian market.
This development was confirmed by Devakumar Edwin, Vice President for Oil and Gas at Dangote Industries, during a recent event held by the Society of Petroleum Engineers (SPE) in Lagos.
“We expect before the end of next month we’ll also have gasoline in the market, and we’ll also have Euro V diesel for export, that is below 10ppm,” Edwin announced. This move positions the refinery as a significant player in both local and international fuel markets, reflecting its growing capabilities and strategic importance.
The refinery, which began operations with its crude distillation unit in January, has progressively expanded its functions. It received the go-ahead to start a mild hydrocracker with desulphurization units in March and has now secured approval to commence operations of its residual fluid catalytic cracker. This latest approval is a critical step, enabling the refinery to refine petrol, significantly bolstering Nigeria’s fuel production capabilities.
In a statement earlier this month, Aliko Dangote, the CEO of Dangote Industries, reaffirmed the refinery’s target to start gasoline production by June. The facility has already embarked on naphtha exports since March, low-sulfur straight-run fuel oil (LSSR) exports in May, and began domestic sales of diesel and jet fuel in April. Notably, it holds a waiver from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to sell diesel with sulphur levels above 600ppm in the local market.
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Despite these advances, industry insiders express some skepticism about the refinery’s ability to start gasoline production next month. A trader highlighted logistical challenges, pointing to the significant volume of cargo still to be delivered to the country. Nonetheless, Edwin remains optimistic about the refinery’s potential and ongoing sales strategy.
“We had a meeting to see, probably, how we can slow down our sales because we’ve already made quite a few forward bookings,” Edwin noted. He added, “Export, for example, aviation/jet, the last vessel went to the Caribbean islands. The next vessel, we are booking for the US market.” This global reach underscores the refinery’s expansive export strategy and its capacity to serve diverse international markets.
In a significant commercial development, Dangote Refinery has secured TotalEnergies as a buyer. This partnership will see the French oil giant taking refined products for its extensive African retail network, including over 540 stations in Nigeria. The agreement also includes TotalEnergies supplying crude to the refinery, with plans to deliver two crude cargoes monthly, equivalent to about 2 million barrels. These cargoes are likely to include Nigeria’s very light Amenam blend and Bonny Light crude.
Meanwhile, efforts to boost Nigeria’s overall oil production continue. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), recently met with Olivier Le Peuch, President of Schlumberger, at the commission’s headquarters in Abuja. The meeting aimed to explore potential collaborations to enhance Nigeria’s oil production and operational efficiency.
Komolafe emphasized the importance of strategic partnerships, noting that the NUPRC’s approach is participatory and collaborative. “Our goal is to facilitate ease of doing business in the oil sector, aligning with global energy transition initiatives and carbon footprint reduction goals,” he stated. He highlighted the commission’s achievements, including the establishment of 17 new regulations to improve industry standards and the re-engineering of the Nigeria National Data Repository (NDR).
Le Peuch expressed Schlumberger’s readiness to partner with the NUPRC, highlighting the role of advanced technology in unlocking Nigeria’s oil potential. The meeting concluded with an agreement to form a contact team to identify further opportunities for collaboration, focusing on enhancing exploration and production efficiencies.
As the Dangote Refinery gears up for its next phase, the anticipation within the industry is palpable. Its ability to meet local demand and penetrate international markets marks a significant milestone for Nigeria’s energy sector.
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.
