Article Summary
- The Dangote Group expects the first fuel products from the Dangote Refinery to be ready by July 2023.
- The Chairman of the Group, Alhaji Aliko Dangote, expressed gratitude to President Muhammadu Buhari for his support in the refinery’s development.
- The Nigerian National Petroleum Company (NNPC) Limited has pledged its support for the refinery operations, and the facility aims to export 40% of its product output.
The Dangote Group has pledged that the first fuel products from the Dangote Refinery will be ready by July 2023.Â
Alhaji Aliko Dangote, the Chairman of the Group, disclosed this during the commissioning of the Dangote Refinery. He said:
“Our product slate is designed to meet the highest quality centers of the high-value products including premium motor spirit (PMS), Automotive gas oil (diesel), Aviation fuel, kerosene, and all of Euro V standards that will enable us not only to meet our country’s demand but also to become a key player in the African and the global market.
“Your Excellency, distinguished guests, our first product will be in the market before the end of July, beginning of August this year.”
He thanked President Muhammadu Buhari for his support through the arduous process that has seen the birth of the Dangote refinery.Â
According to Dangote, the Nigerian National Petroleum Company (NNPC) Limited has pledged its support for the refinery operations.Â
The Dangote refinery is also targeting 40% of its products’ output for exports.
More details of the launch
Speaking further during the refinery commissioning, Alhaji Dangote said President Buhari has been a great support system. He appreciated the President’s efforts in ensuring the realization of the refinery project saying:
- “At times when I felt like giving up, your confidence and quiet words of assurance have been the difference. Mr President, I want to thank you from the bottom of my heart for this encouragement and for making sure that this project is possible.”
Since the beginning of this democratic dispensation, the Lagos state government has been exceptionally remarkable in its commitment and support for the private sector.”
Energy is a vital component of national security
In his industry address, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari said the refinery commissioning is a defining moment for the Nigerian energy industry, noting that energy is not just a business but a vital component of national security.
He highlighted the fact that the refinery can provide refined petroleum products and petrochemicals for the country and the region. He said:
- “The benefits will be real and tangible for consumers as well as the economy and the country more generally. This remarkable achievement is not taking place in a vacuum, this extraordinary facility that we see here today is not standing alone, but with the enabling environment that our government continues to provide and we are most grateful for this.
- “The reforms that we have undertaken in the Nigerian petroleum industry under the leadership of President Muhammadu Buhari were built around a clear set of principles that anticipate the tremendous changes that will take place in the international energy market in the decades to come.
- “NNPCL will continue to support investment in domestic refining to satisfy the growing demand for refined petroleum products in both local and regional markets as against simply exporting crude to diminishing markets overseas.”
- “The Dangote Refinery with the new deal that we have been building, supported by the enabling Petroleum Industry Act (PIA), will surely provide domestic security of supply in our country. The lingering challenges of petroleum subsidies are getting out of the capacity of the state to bear and the differentials that domestic refining will provide are insignificant and cannot compensate for the subsidies.”
It is a first of its kind but we expected the outgoing administration to make the 3 refineries work. I think fuel subsidy removal will have a little negative impact if Dangote Refinery has the capacity to meet local consumption.
With this, duopoly enjoyed by the major marketers will be broken. If the forces of demand and supply are allowed to determine the price, the PMS price should be lower than what we have currently all things being equal.
Conversely, the move to produce non-fuel automobiles, especially cars when it becomes effective will reduce local consumption of PMS. But this is a great job from Dangote.
Thats good development for the giant nation