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Home Sectors Energy

Dangote refinery to begin production of petrol in September – Report  

Cyrus Ademola by Cyrus Ademola
August 22, 2024
in Energy, Sectors
Transmission lines in Cross River, Rivers have been vandalized severally in over 2 months – TCN
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Dangote Petroleum Refinery is currently conducting test runs for petrol production, with expectations for full operations to begin by mid-September, according to a report by Reuters.  

The report Indicates that the timeline may be subjected to further delay based on notes on Wednesday by IIR Energy, an oil Industry monitor. 

IIR informed its clients that “there is a possibility of additional extensions” to the commencement date. 

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Backstory  

The Dangote Refinery has faced repeated postponements in its petrol production schedule, initially setting a launch for June.  

According to the refinery’s CEO, Aliko Dangote, a slight technical delay prevented the June target from being met, leading to a rescheduled start date in July.  

However, the refinery also missed the July deadline.  

Dangote assured that production would begin in August, but a new report from IIR suggests there might be further delays, with petrol production now expected to commence in mid-September. 

Meanwhile, the refinery has begun the supply of jet fuel and diesel to domestic marketers in the country. 

In addition, the $20 billion facility started exporting its first jet fuel cargo to Europe. 

The first shipment, loaded onto the vessel “Doric Breeze,” left the Lekki Free Zone in Lagos in May to Rotterdam, Netherlands, as per data from S&P Global Commodities at Sea. 

Dangote said the refinery is positioned to be one of the best petroleum refineries in the world. 

“What we are doing is to be able to export petroleum products to anywhere and compete with any company. By next week, we’ll be producing about ten thousand ppm in terms of diesel which now what’s happening in that we import about 2 to 3 thousand. We will produce the best,” Dangote added. 

What you should know 

The Dangote refinery is expected to significantly reduce Nigeria’s dependence on imported petroleum products. 

Nigeria, despite being the most populous country in Africa and its top oil producer, ironically imports almost all of its fuel. 

Primarily, this is attributed to the nation’s lack of sufficient refining infrastructure, a gap that the new refinery seeks to fill. 

The Dangote refinery has failed to meet production timelines in the past and only began distribution of diesel and aviation fuel almost eight months after commissioning in May last year. 

The refinery hopes to significantly reduce energy importation not only in Nigeria but across West Africa.   

An earlier report from Nairametrics noted that the commencement of full production in the refinery would result in the closure of some refineries in Europe primarily exporting significantly reducing the $17 billion pie of gasoline import to Africa.


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Tags: Aliko DangoteDangote Refinery
Cyrus Ademola

Cyrus Ademola

  • Cyrus Ademola is an energy and economy analyst with over half a decade experience in journalism, research-based oped, economic reportage and energy analysis. His works have been featured on different media outlets, covering from oil and gas to business trends.

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