The Dangote Refinery is poised to transform the long-standing fuel trade from Europe to Africa and reduce Nigeria’s dependence on imported refined products.
As the world’s largest single-train refinery, Dangote Refinery has begun test runs to produce Premium Motor Spirit (PMS), commonly known as petrol.
According to a Reuters report, referencing a note from industry monitor IIR Energy, the 650,000-barrel-per-day refinery is expected to fully commence operations and start petrol distribution by mid-September after missing several previous deadlines.
Built by Aliko Dangote, Africa’s richest man, and costing $20 billion, the facility has so far only produced diesel and other distilled fuels.
Dangote initially announced petrol deliveries would begin in May, but this was delayed. The company later shifted the rollout date to July and August, all to no avail due to hiccups in crude oil supply to the plant.
“It is possible that there could be further extensions,” IIR said in a note to clients.
Once fully operational, the Dangote Refinery will end Nigeria’s dependence on imported refined products.
This milestone follows an agreement reached between a committee set up by the Nigerian Government and Dangote Petroleum Refinery to roll out petrol in September this year. The committee was set up to ensure that crude oil sales to local refineries are conducted in naira.
The Nigerian Government has previously announced that it will begin selling crude oil to Dangote Refinery and other local refineries from October 1, 2024. This was confirmed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting with the Implementation Committee in Abuja.
“The first PMS delivery from Dangote is expected next month under existing agreements,” the Executive Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji, and the Chairman of the Technical Sub-Committee said at the meeting.