Key Points
- Dangote oil refinery is on track to deliver petrol (PMS) this July, fulfilling its earlier promise.
- The refinery, the largest single-train facility globally, boasts a 650,000 barrel per day processing capacity.
- It aims to be a significant contributor to Nigeria’s industrial development, job creation, and economic prosperity.
The Dangote Oil Refinery is set to commence petrol supply in July, the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, has reportedly confirmed.
Speaking during a recent tour of the facility with S&P Global officials, Edwin reportedly reaffirmed the company’s commitment to meeting its production timeline.
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Edwin highlighted the refinery’s role in transforming Nigeria’s oil industry by leveraging the continent’s abundant crude oil resources to produce refined products locally.
“Our aim is to create a virtuous cycle of industrial development, job creation, and economic prosperity,” he stated.
He further assured that the refinery will start producing Premium Motor Spirit (PMS) this month, emphasising the high quality of the products, which meet international standards.
“Our facility can meet 100 per cent of Nigeria’s demand for petrol, diesel, kerosene, and aviation fuel, with surpluses available for export,” Edwin added.
Economic Implications
S&P Global representatives noted the potential of the Dangote refinery to alleviate Nigeria’s foreign exchange challenges by ending the reliance on fuel imports, which puts significant pressure on the local Naira currency. The refinery’s capacity to transform Nigeria into a net exporter of petroleum products is expected to boost revenue generation and reduce the strain on foreign exchange reserves.
Also Read: Dangote Refinery displaces European, Russian exports in West African markets
Ravi Bhatia, Director and Lead Analyst of Sovereign and International Public Finance Ratings at S&P Global, led the delegation and expressed optimism about the refinery’s impact.
“The facility is capable of processing 650,000 barrels a day at full capacity, making it the largest single-train refinery complex in the world. This development is poised to save Nigeria substantial foreign exchange and positively impact the economy in the medium term,” Bhatia remarked after a comprehensive tour.
Technological Advancements
The S&P Global team commended Aliko Dangote, President of Dangote Industries Limited, for integrating advanced technologies and stringent quality control measures, including a state-of-the-art Central Control Unit, which ensures seamless automation of operations.
Currently, the refinery operates at a capacity of 350,000 barrels per day, with plans to scale up to at least 500,000 barrels per day by July/August. The facility is designed to process a variety of crude oils, including African and Middle Eastern crudes, as well as US Light Oil, adhering to Euro V specifications and complying with stringent environmental standards set by the US EPA, European Union, and African Refiners and Distribution Association.
Edwin proudly noted that unlike many refineries built by foreign companies, the Dangote refinery was designed and constructed by a Nigerian company, acting as its own Engineering, Procurement, and Construction (EPC) contractor. The facility also features a self-sufficient marine terminal capable of handling the world’s largest vessels.
“The refinery produces Euro V grade products, which are among the best in the world. It is highly energy-efficient and environmentally friendly, with advanced automation. This achievement is a testament to the capabilities of a Nigerian company in executing such a significant project,” Edwin stated.
With the commencement of petrol production slated for this month, the Dangote refinery is set to play a pivotal role in reshaping Nigeria’s oil industry and economic landscape.
