In a significant stride towards Nigeria’s quest for energy independence, the highly anticipated Dangote Refinery is on the brink of releasing its maiden fuel batches into the local market within the upcoming weeks, according to four corroborating sources disclosed to Reuters.
Nigeria, historically reliant on fuel imports to satisfy its domestic demands, stands on the cusp of a transformative juncture as the $20 billion Dangote Refinery prepares to pivot the nation into a net exporter of fuel to neighboring West African countries. This impending shift in power dynamics within the industry holds immense potential for reshaping profit landscapes.
A senior executive from Dangote, speaking under conditions of anonymity due to the confidentiality of the matter, relayed to Reuters that the inaugural fuel consignments are poised to hit the market imminently. This revelation signifies a decline in Nigeria’s recent oil export volumes and foretells a plausible reduction in gasoline and diesel imports from oil majors and trading entities, a trade endeavor amounting to billions annually and entrenched for decades.
Insider sources intimate that Nigeria’s national oil firm, NNPC Ltd, is slated to furnish the 650,000 barrel per day (bpd) refinery with a supply of 4 million barrels come March, as per a source possessing direct insight into the affair. This allocation, cumulatively totaling 12 million barrels since December, approximately translates to 100,000 bpd. Additionally, it’s disclosed that NNPC is adopting a spot basis in allocating cargoes to the refinery.
Furthermore, Dangote Refinery is poised to receive two cargoes of US WTI crude from oil trader Trafigura, according to two credible sources privy to the matter. However, both the privately owned Dangote Refinery and the state-owned NNPC refrained from immediate responses to Reuters’ official request for comments.
Investigations conducted by Daily Trust have unveiled that the refinery is currently engaged in the production and storage of diesel, naphtha, jet fuel, and residual oil, as divulged by one of the sources. The Dangote executive further elaborated that the final stages of quality standard tests are underway to ascertain if the supplies meet prescribed benchmarks.
While attaining full operational capacity may necessitate several months, Dangote has outlined its initial refining capacity at 350,000 bpd, with aspirations to escalate production to its zenith later this year.
