Dangote’s Nigerian Refinery Granted License to Process 300K Barrels Daily, Focusing on Gasoline Production
Africa’s wealthiest individual, billionaire Aliko Dangote, revealed that his Nigerian refinery has obtained a license to refine over 300,000 barrels of Nigerian crude each day. He further emphasized the refinery’s intention to commence gasoline processing in the near future, highlighting their commitment to using exclusively Nigerian crude as they initiate operations.
During an interview in Riyadh at the Saudi-Nigeria business roundtable, Dangote expressed his confidence in the refinery’s readiness, assuring the world that they will witness the introduction of their gasoline products soon. Initially planned to commence production in August, the refinery encountered delays but Dangote remains optimistic, stating that production will commence very very soon. The initial focus of the facility will be to supply gasoline to Nigeria before venturing into the export market, predominantly the West African region.
Anticipated to have a capacity of 650,000 barrels per day, the refinery is poised to produce 27 million liters of diesel, 11 million liters of kerosene, and 9 million liters of jet fuel. Dangote emphasized that the facility will procure crude from various producers within Nigeria, including the country’s state oil company.
Last month, Nigeria experienced a significant increase in oil output, reaching 1.49 million barrels per day, the highest in nearly two years. This spike in production is attributed to the introduction of a new grade of crude called Nembe, managed and marketed through a joint venture involving the Nigerian National Petroleum Company (NNPC) and Aiteo Eastern E&P Co. Ltd.
However, Nigeria has encountered challenges meeting its quota due to crude theft and attacks on pipelines in the Niger Delta, which have curtailed the nation’s revenue-generation capabilities. Consequently, the Nigerian government has been striving to meet its revenue targets amidst these obstacles.
As Dangote’s refinery gears up to enter the market, the region’s hopes are buoyed by the potential economic benefits associated with increased refining capacity and the potential to fulfill domestic fuel demands. The successful operation of the refinery will contribute to Nigeria’s capacity to meet its own energy needs and potentially become an exporter of refined petroleum products, securing a more stable future for the country’s oil industry overall.
In conclusion, Dangote’s Nigerian refinery has made significant strides by securing a license to process 300,000 barrels of Nigerian crude daily. With its emphasis on gasoline production and plans to cater first to Nigeria’s domestic demand, the refinery is poised to positively impact the country’s energy landscape and potentially the wider West African region. As production begins in earnest, the world eagerly awaits the unveiling of Dangote’s gasoline products.
