Dangote Petroleum Refinery Set to Produce Diesel and Aviation Fuel in January 2024, Faces Delay in Petrol Production
The Dangote Petroleum Refinery is on track to commence production, with the processing of crude oil expected to start in January 2024. The refinery, located in the Lekki Free Trade Zone in Lagos, has received one million barrels of crude oil, a fraction of the six million barrels required to initiate full production. While diesel and aviation fuel production is imminent, the production of Premium Motor Spirit (PMS) or petrol is delayed due to the gradual supply of crude oil.
Key Points:
- Crude Oil Supply Challenges:
- The Dangote Refinery faced challenges in the supply of crude oil, impacting its production schedule. Despite earlier promises from the Nigerian National Petroleum Company Limited (NNPC) to provide six million barrels of crude oil, only one million barrels have been received so far.
- Partial Crude Oil Receipt and Production Schedule:
- The refinery, with a capacity of 650,000 barrels per day, requires a minimum of six million barrels to start production. The one million barrels received will lead to the production of diesel and aviation fuel. The refinery plans to receive the remaining five million barrels in five installments.
- Timeline for Diesel and Aviation Fuel Production:
- Diesel and aviation fuel production is expected to begin in January 2024. The facility aims to progressively produce different refined products, with petrol (PMS), kerosene, and others anticipated as the company receives more crude cargoes.
- Supply Source and Cargo Details:
- The recent crude oil cargo, totaling one million barrels, was purchased from Shell International Trading and Shipping Company Limited. The cargo, sourced from Agbami, was discharged into the refinery’s crude oil tanks.
- Impact on Fuel Supply Challenges:
- The refinery’s operational commencement is viewed as a crucial step in alleviating fuel supply challenges faced by Nigeria and other West African countries. The facility is designed to meet 100 percent of Nigeria’s refined product requirements and aims to export surplus products.
- Attributes of the Refinery:
- The Dangote Petroleum Refinery covers an extensive area and has a total of 177 tanks with a cumulative capacity of 4.74 billion liters. It can load 2,900 trucks a day and has a dedicated power plant with a capacity of 435 megawatts.
- Employment Generation and Market Impact:
- The refinery is expected to create over 100,000 direct and indirect jobs, with employment opportunities spanning retail outlets, filling stations, depots, and transportation. The facility is anticipated to generate a $21 billion market annually for Nigerian crude.
- Environmental and Technological Features:
- The refinery incorporates environmentally sustainable practices, including carbon capture technologies, carbon emissions reduction, and water recirculation. It is designed to comply with global emission norms and standards.
- Commendations and Expectations:
- Billionaire businessman Femi Otedola congratulated Aliko Dangote and praised the refinery’s potential to champion energy security and independence for Nigeria. The refinery’s impact on the environment and its role in reducing CO2 emissions were highlighted.
Conclusion: The imminent production start of the Dangote Petroleum Refinery signifies a significant milestone in Nigeria’s quest for energy security and self-sufficiency. The refinery’s ability to produce a range of refined products and its focus on environmental sustainability position it as a transformative force in the region’s oil and gas industry. The successful operation of the refinery is eagerly awaited, with expectations of positive economic and social impacts for Nigeria and its citizens.
