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Dangote’s Refinery To Start Refining Petrol In November

Dangote’s Refinery To Start Refining Petrol In November 

According to the group’s executive director, Devakumar Edwin, the Dangote Refinery is scheduled to start refining petrol by November 30, 2023, and diesel and jet fuel operations by October 2023.

The refinery will receive its first crude shipment in two weeks, and in October 2023, it will start producing up to 370,000 barrels per day of diesel and jet fuel, according to Edwin, who spoke with S&P Global Commodity Insights on Monday.

Edwin also mentioned that the refinery would start a gradual rise in petrol output with the goal of reaching a remarkable 650,000 barrels per day by November 30. “Right now, I’m ready to receive crude,” he said, emphasising the refinery’s willingness to receive crude oil. All we have to do is wait for the first ship. Thus, we may begin as soon as it arrives.

During his conversation with S&P, Edwin made it clear that the Nigerian National Petroleum Corporation Limited had previously committed its crude oil to another business on a forward basis, which resulted in a little delay.

This explanation explained the change in the initial timeframe. The refinery would soon run solely on Nigerian crude oil starting in November 2023, he claimed, and the disruption was only temporary.

Because it is located in a free trade zone outside of Lagos, he pointed out that US dollars rather than naira will be used to pay for the Nigerian oil. Due to its equity stake, the NNPCL will deliver certain petroleum products at discounted rates.

According to Edwin, the Dangote refinery can process most African crudes, Middle Eastern Arab Light, and even US light-tight oil in addition to heavy Angolan grades.

He said, “We can take even some of the Russian grades, if the global system opens up to allow us to receive them. Basically, if you look at our production profile, 50% of my production will meet 100% of the requirements of the country. 

“Excess gasoline—which will be 10 ppm sulphur Euro 5 quality—will be exported to other African markets as well as the US and South America, although the volumes will be relatively small. Meanwhile, jet fuel will be exported to Europe, and diesel will be sold in sub-Saharan Africa.” 

S&P also quoted Edwin as saying the refinery would be “enormously beneficial to the country” by establishing a reliable supply of “environmentally friendly” refined products and bringing “a huge amount of foreign exchange into the country.”

Furthermore, Edwin noted that the refinery would play a pivotal role in alleviating the fuel supply challenges faced by import-dependent West Africa, worsened by Nigeria’s recent removal of fuel subsidies, which had led to a thriving illicit gasoline market due to price fluctuations.

Additionally, he added that the revenues generated from the refinery’s operations would be reinvested to fuel further developments, underscoring Aliko Dangote’s commitment to Nigeria.

“The money will be coming back in, and it will go for further investments.”

“Aliko Dangote is from Nigeria, and his focus is always on Nigeria,” Edwin said.

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