Dangote Refinery Secures License to Process 300,000 Barrels of Nigerian Crude Daily, Says Aliko Dangote
Aliko Dangote, Africa’s richest person, announced that the Dangote refinery has obtained a license to refine more than 300,000 barrels of Nigerian crude per day. Speaking in Riyadh at the Saudi-Nigeria business roundtable, Dangote stated that the refinery would commence processing petrol “very very soon” and emphasized the preference to start with Nigerian crude rather than foreign imports.
Key Points:
- Refinery Licensing:
- The Dangote refinery has secured a license to refine over 300,000 barrels of Nigerian crude daily, according to Aliko Dangote.
- Dangote expressed the refinery’s readiness to start operations using Nigerian crude, and the billionaire stated that the production of gasoline products would begin soon.
- Crude Supply and Operations:
- The 650,000 barrel-a-day refinery, initially scheduled to start production by the end of July, will commence operations “very very soon.”
- Dangote emphasized that the refinery’s primary focus is to supply petrol to Nigeria before considering exports to other regions, including West Africa.
- Production Capacities:
- The refinery is expected to have a daily production capacity of 650,000 barrels, with specific product outputs, including 27 million litres of diesel, 11 million litres of kerosene, and 9 million litres of jet fuel.
- Crude Allocation:
- The Nigerian National Petroleum Company (NNPC) Limited is set to allocate six million barrels of crude oil to the Dangote Refinery in December 2023.
- The refinery is anticipated to receive crude from other Nigerian producers, along with supplies from the country’s state oil company, NNPC.
- Prioritizing Local Supply:
- Dangote highlighted that the refinery’s initial priority is to supply petrol to the domestic market before exploring export opportunities.
- The refinery aims to contribute significantly to meeting Nigeria’s fuel demand and reducing the country’s reliance on fuel imports.
- Introduction of Nembe Crude Grade:
- The Nigerian National Petroleum Company (NNPC) recently introduced the Nembe crude oil grade to the market.
- The Nembe crude stream will be managed and marketed through a joint venture between NNPC and Aiteo Eastern Exploration and Production Company.
Conclusion:
Aliko Dangote’s announcement of the Dangote refinery obtaining a license to process over 300,000 barrels of Nigerian crude daily signifies a significant step toward the commencement of operations. The refinery’s focus on utilizing Nigerian crude and prioritizing local supply aligns with broader objectives to enhance domestic fuel production and reduce reliance on imports, contributing to Nigeria’s energy self-sufficiency. The successful operation of the Dangote refinery holds strategic importance for Nigeria’s energy landscape and economic development.
