The Dangote Petroleum Refinery is gearing up to commence the production of Automotive Gas Oil (diesel) and JetA1 (aviation fuel) in January 2024.
However, the production of Premium Motor Spirit (petrol) is facing delays due to the incremental supply of crude oil.
The facility, located in the Dangote Industries Free Zone in Lagos, Nigeria, with a capacity to refine 650,000 barrels of crude oil per day, is set to play a crucial role in Nigeria’s energy security.
Recent reports indicate that the refinery recently received one million barrels of crude oil out of the required six million barrels needed to initiate full-scale production.
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The remaining five million barrels are expected to arrive in five installments, with the first installment being from Shell International Trading and Shipping Company Limited.
The refinery, which missed its October production target, aims to alleviate fuel supply challenges in Nigeria and West African countries.
The refinery management confirmed the receipt of one million barrels, stating that this initial supply would lead to the production of diesel and aviation fuel.
The production of Premium Motor Spirit, kerosene, and other refined products is expected to follow as the company secures additional crude cargoes.
The facility is designed to meet 100% of Nigeria’s refined product requirements and has the flexibility to process various crude grades.
Despite the delays and challenges, the Dangote Petroleum Refinery is seen as a crucial development for Nigeria’s energy security.
The refinery is expected to create over 100,000 direct and indirect jobs, with a projected annual market value of $21 billion for Nigerian crude.
The facility includes tank farms with a cumulative capacity of 4.74 billion liters, and it has its own power plant with a capacity of 435 megawatts.
Aliko Dangote, the President of Dangote Group, expressed delight at reaching this significant milestone and emphasized the company’s focus on ramping up the refinery to its full capacity.
The Country Chairman of Shell Companies in Nigeria, Osagie Okunbor, also welcomed the refinery’s startup, highlighting its potential to produce essential fuels for Nigeria and West Africa.
You can also read: Dangote Refinery Gears Up for Production with Second Crude Shipment