The Dangote Petroleum Refinery is set to start producing Automotive Gas Oil, also known as diesel, and JetA1 or aviation fuel next month, January 2024, while the production of Premium Motor Spirit, popularly called petrol, is being delayed by the supply of crude oil in installments.
It was gathered on Sunday that the facility would require a minimum of six million barrels of crude oil to kick-start the full production of refined petroleum products including AGO, PMS, Jet A1 and Dual Purpose Kerosene, otherwise called kerosene.
But what the refinery got last week was one million barrels of crude, while the remaining five million barrels would arrive at the $20bn facility in another five installments.
The Dangote Petroleum Refinery and Petrochemical Project, a subsidiary of Dangote Industries Limited, is a 650,000 barrels per day crude oil refinery, located in Dangote Industries Free Zone, Ibeju-Lekki, Lagos, Nigeria.
Dangote Petroleum Refinery with the capacity to refine 650,000 barrels of crude oil per day covers an area of approximately 2,635 hectares and is located in the Lekki Free Trade Zone in Lagos.
On November 2, 2023, The PUNCH reported that the failure to supply crude oil to domestic refineries, including the multi-billion dollar Dangote refinery, stalled the production of refined petroleum products at the facilities.
The report also stated that the lack of crude oil supply came as the 650,000 barrels per day Dangote Refinery in Lagos missed the October production projection it had earlier set.
It pointed out that the October production target miss made it the second time in 2023 that Dangote Refinery would raise hopes in Africa, especially Nigeria, of a possible end to petrol importation.
Following The PUNCH’s report, the Nigerian National Petroleum Company Limited swiftly declared the next day November 3, 2023, that it was set to provide six million barrels of crude oil to the Dangote Refinery. It, however, has yet to do so.
But on Friday, the management of Dangote Refinery confirmed the receipt of one million barrels of crude oil, adding that this would lead to the production of refined products at the facility.
“In a major step towards boosting Nigeria’s domestic refining capacity and attaining energy security (self-sufficiency), Dangote Petroleum Refinery and Petrochemicals plant has purchased one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited, one of the largest trading companies in Nigeria as well as globally, trading over eight million barrels of crude oil per day,” the oil firm had stated.
But when contacted on Sunday to confirm whether the company would start pumping out refined PMS based on the one million barrels of crude that it received on Friday, an official of the firm stated that what Nigerians should expect in January would be diesel and aviation fuel.
The official explained that the facility required a minimum of six million barrels of crude to commence the full production of refined petroleum products, but what it got last week was only one million barrels.
“This supply will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and LPG, before subsequently progressing to the production of Premium Motor Spirit,” the company stated.
It said this latest development would play a pivotal role in alleviating the fuel supply challenges faced by Nigeria as well as the West African countries.
The firm stated that the facility was designed for 100 percent Nigerian crude with the flexibility to process other crudes, adding that the 650,000 barrels per day refinery could process most African crude grades as well as Middle Eastern Arab Light and even United States Light tight oil, as well as crude from other countries.
“Dangote Petroleum Refinery can meet 100 percent of Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation jet, and also have a surplus of each of these products for export.
“The refinery was built to take crude through its two SPMs located 25km from the shore and to discharge petroleum products through three separate SPMs. In addition, the refinery has the capacity to load 2,900 trucks a day at its truck-loading gantries.
“Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available. In addition, all products from the refinery will conform to Euro V specifications.
“The refinery is designed to comply with US EPA, European emission norms, and (defunct) Department of Petroleum Resources emission/effluent norms as well as African Refiners and Distribution Association standards,” the company stated.
The President, Dangote Group, Aliko Dangote, was quoted as saying, “We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects.
“Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market.”
On his part, the Country Chairman, Shell Companies in Nigeria, Osagie Okunbor, said, “We welcome the startup of a refinery that is designed to produce gasoline, diesel, and low-sulphur fuels for Nigeria and across West Africa and are happy to be enabling it.”
