The Nigeria National Petroleum Corporation Limited (NNPCL) has delivered an additional one million barrels of crude oil to the Dangote Refinery, marking the fourth such delivery in a series over the past few weeks.
The company disclosed this in a statement, adding that the fifth consignment is well underway to kick start the 650,000 barrels per day Dangote Petroleum Refinery.
An excerpt of the statement reads below,
- “Preparations are in top gear for the commencement of production in Dangote Refinery, as the petrochemical company has received the fourth crude shipment of, one million barrels of bonny light crude supplied by the Nigeria National Petroleum Corporation Limited (NNPCL), and expecting the fifth crude shipment, anytime from now.
- “The fresh one million barrels of crude was the fourth consignment to be delivered to the Dangote facility out of the six million barrels of crude being expected by the world’s largest single-train refinery.”
Backstory
Last December, Dangote Refinery reported a significant milestone by receiving one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO), a major player in Nigeria’s trading landscape and a global heavyweight transacting over 8 million barrels of crude oil daily.
This delivery is part of a broader initiative, as the facility has now welcomed a total of four shipments, each comprising one million barrels of bonny light crude, courtesy of the Nigeria National Petroleum Corporation Limited (NNPCL). The first supply came in on December 8, 2023.
Anticipating the commencement of production, the refinery aims to secure a total of six million barrels of crude oil, as outlined in a strategic plan reported by Nairametrics.
Prior the NNPCL had articulated its strategy to provide the Dangote oil refinery with six shipments of crude oil in December, aligning with a one-year agreement for testing purposes.
More Insights
Dangote Refinery obtained a license in November 2023, permitting the refining of over 300,000 barrels of crude daily, according to statements by Alhaji Aliko Dangote during an interview conducted on the sidelines of the Saudi-Nigeria business roundtable in Riyadh.
The refinery’s production capabilities are poised to yield 27 million liters of diesel, 11 million liters of kerosene, and 9 million liters of jet fuel. It is positioned to receive crude not only from other Nigerian producers but also from the Nigerian National Petroleum Company Limited (NNPCL).
- Projections for the Dangote Refinery indicate a substantial annual revenue generation of $27 billion, as reported by Nairametrics.
- In addition to standard products, the refinery is set to manufacture specialized items like naphtha and polypropylene, expected to catalyze growth in industries such as cosmetics, plastics, and textiles.
- Tailored to process Nigerian crude oil, the refinery boasts versatility in handling crude from diverse sources, including various African nations, the Middle East (e.g., Arab Light), and the United States (Light Tight Oil), among others.
- Company data reveals a noteworthy surge in motor gasoline (petrol) production, forecasted to rise from virtually zero to approximately 249,000 barrels per day (b/d) by 2026, with projections exceeding 300,000 b/d by 2033.
