Dangote Oil Refinery’s much-anticipated entry into the petrol supply market in July might face delays due to a shortage of crude oil, according to industry sources. The refinery, with a capacity of 650,000 barrels per day located in Lekki, Lagos, was scheduled to commence operations this July, aiming to reduce Nigeria’s reliance on imported petrol.
However, concerns are rising as the refinery has not received the required volumes of crude oil needed for refining petrol. Industry experts like Jide Pratt and financial planning expert Kalu Aja expressed skepticism about meeting the July deadline, questioning Nigeria’s inability to provide enough crude oil for Dangote.
Hector Igbikiowubo emphasized the importance of NNPC refineries working to ensure energy security for Nigeria and questioned why NNPC isn’t allocating all of its 445,000 barrels per day to Dangote Refinery for refining. Despite NNPC’s 20 percent equity in the project, efforts to reach NNPC’s chief communication officer for clarification proved unsuccessful.
While Dangote Refinery has received Nigerian and US crude grades, it may explore alternative supply sources as it scales production. Nigeria, as a leading oil producer in Africa, should ideally provide ample supply to its refiners. However, Nigeria currently has operational modular refineries producing various petroleum products, while others remain stalled due to crude unavailability and other issues.
Source: Business Day