Victor EzejaThere are indications that the Dangote refinery is to receive a fresh supply of four crude oil cargoes from the Nigerian National Petroleum Company Limited (NNPCL) as part of its February consignment schedule.
“Dangote refinery could begin test runs as early as this week, and we’re gearing up for that,” said Edwin Devakumar, Dangote’s Group Executive Director for Strategy, Portfolio Development, and Capital Projects.
“We aim to initiate operations for 8-10 days before considering lining up more cargoes to prevent inventory buildup and rising costs,” Devakumar added.
This move holds the promise of transforming Nigeria’s energy landscape.
With the country heavily reliant on fuel imports despite being an active member of OPEC, the Dangote refinery’s impending operations could herald a shift towards self-sufficiency.
Moreover, it has the potential to establish Nigeria as a fuel exporter to neighboring West African nations, reshaping oil trading dynamics in the Atlantic Basin.
The refinery’s acquisition of one million barrels of Nigeria’s Agbami crude, coupled with the additional six million barrels received since December, underlines the momentum building toward full-scale operations.
Notably, NNPC supplied four cargoes to the 650,000 barrel per day plant, indicating a proactive stance in facilitating the refinery’s launch.
While NNPC remains reticent on the matter, sources suggest that the company might be awaiting the commencement of the refinery’s test runs before further oil supplies.
With an initial processing capacity targeted at 350,000 barrels per day, the refinery aims to scale up to its maximum capacity by the year-end.
Furthermore, Devakumar hinted at potential crude supplies from other countries, indicating a diversified sourcing strategy for the refinery’s future operations.
The imminent collaboration between NNPC and the Dangote Refinery marks a pivotal moment in Africa’s energy landscape, signifying a potential leap towards regional energy autonomy and export capabilities.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
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