Dangote Refinery is on the verge of revolutionising Nigeria’s energy landscape with its ambitious timeline for commencing petrochemical operations. According to the group’s executive director, Devakumar Edwin, the refinery is gearing up to refine petrol by November 30, 2023, with diesel and jet fuel production set to kick off in October 2023.
In an exclusive interview with S&P Global Commodity Insights, Edwin disclosed that the first crude cargo of Dangote Refinery is expected to arrive in a mere two weeks, marking the beginning of its journey to produce up to 370,000 barrels per day of diesel and jet fuel in just a few months. The refinery’s ultimate goal is to reach an impressive daily output of 650,000 barrels of petrol by November 30.
Edwin expressed the refinery’s readiness to receive crude oil, awaiting the arrival of the first vessel with anticipation. He emphasized, “Right now, I’m ready to receive crude. We are just waiting for the first vessel. And so, as soon as it comes in, we can start.”
Addressing a slight shift in the initial timeline, Edwin explained that the Nigerian National Petroleum Corporation Limited had temporarily allocated their crude oil to another entity, causing a brief delay. However, he assured that Dangote Refinery would exclusively run on Nigerian crude oil starting in November 2023.
Notably, the Nigerian oil will be purchased in US dollars, considering the location of the Dangote Refinery in a free trade zone near Lagos. Edwin mentioned that NNPCL would supply some crude at discounted prices due to its equity stake.
Furthermore, Edwin highlighted the refinery’s versatile capabilities, stating that it can process various African crudes, Middle Eastern Arab Light, and even US light-tight oil. He pointed out that a significant portion of the production would cater to Nigeria’s domestic requirements, while excess gasoline would be exported to African markets, the US, and South America. Jet fuel would find its way to Europe, and diesel would be supplied to sub-Saharan Africa.
S&P quoted Edwin, underscoring the refinery’s potential to be “enormously beneficial to the country” by providing a reliable source of environmentally friendly refined products and contributing substantial foreign exchange to Nigeria.
Additionally, Edwin emphasized the role of the Dangote Refinery in addressing fuel supply challenges in import-dependent West Africa, particularly after Nigeria’s removal of fuel subsidies, which led to volatile gasoline prices and illicit markets. He highlighted Aliko Dangote’s unwavering commitment to Nigeria, reaffirming that the refinery’s revenues would be reinvested to support further development in the nation.