Chairman of Dangote Group, Aliko Dangote confirmed his refinery startup in December 2023, saying that 350,000 barrels per day is the first target of the refinery.
He said this to the Financial Times (FT) in a November 25 interview.
According to Dangote, the long-awaited refinery is starting with 350,000 barrels a day, He also confirmed that a deal had already been clinched for the first cargo of about 6 million barrels of crude for delivery in December 2023.
He said:
- “We are starting with 350,000 barrels a day. The challenges that we faced, I don’t know whether other people can face these challenges and even survive. It is either we sink, or we sail through. And we thank Almighty that at least we have arrived at the destination.”
Recall that Nairametrics reported on November 2, that the Nigerian National Petroleum Company Limited will supply 6 million barrels of crude oil totalling 200,000 barrels of oil per day to the Dangote refinery next month as part of a one-year supply agreement.
In his interview with the Financial Times, Dangote shared that he held a strong belief in the refinery’s capability to achieve its maximum output of 650,000 barrels per day by the end of 2024.
Emphasizing that the company had successfully resolved all challenges related to crude oil supply, he disclosed plans for the Dangote refinery to eventually become an independent entity listed on the Lagos Stock Exchange.
Expanding on the refinery project, Dangote expressed that this kind of project won’t emerge in Nigeria within the next twenty years.
He also said the company did not cut corners or seek applause, but the project was done for the sake of posterity.
During the FT interview, Dangote dismissed the idea that the Nigerian National Petroleum Corporation (NNPC) was pushing for a larger stake in the refinery project. He mentioned that once fully operational, the refinery is estimated to generate a substantial annual revenue of $25 billion. Dangote expressed confidence that NNPC is content with the shares already allocated to them in the project.
What you should know
In its World Energy Outlook for October 2023, the International Energy Agency (IEA) highlighted the significant impact expected from the Dangote refinery, which boasts a substantial capacity of 650,000 barrels per day.
This refinery is anticipated to play a crucial role in driving oil demand growth, particularly for African countries that rely heavily on imported refined energy products.
The report underlined the prevailing situation in African nations, which heavily depend on imports for refined energy products.
However, with the establishment of the Dangote refinery, there’s potential for a transformation in this landscape.
The IEA emphasized that Africa presently produces around 7 million barrels of oil each day, a significant portion of which—approximately 40%—is exported.
This is good news. The era of insufficient supply of petroleum products in Nigeria is gone for good. Dangote deserves applause. With PH refinery coming back on stream this December also, I believe Nigerians should not only expect adequate supply of petroleum products but cheaper prices.