In a recent interview with S&P Global Commodity Insights, Devakumar Edwin, the Executive Director of Dangote Refinery, revealed key updates regarding the refinery’s operational timeline and its potential impact on Nigeria and the global fuel market.
The eagerly anticipated Dangote Refinery is poised to kickstart its refining operations ahead of schedule.
According to Edwin, the refinery is set to commence the production of petrol as early as November 30, 2023.
Diesel and jet fuel production are scheduled to begin in October 2023, marking a significant milestone in the country’s quest for energy self-sufficiency.
In a promising development, Edwin disclosed that the refinery would receive its inaugural shipment of crude oil within the next two weeks, paving the way for the production of up to 370,000 barrels per day of diesel and jet fuel by October 2023.
Dangote refinery overcomes delays
He underscored the refinery’s readiness to process crude oil, stating, “Right now, I’m ready to receive crude. We are just waiting for the first vessel. And so, as soon as it comes in, we can start.”
Edwin also addressed the temporary delay in the refinery’s initial timeline, explaining that the Nigerian National Petroleum Corporation Limited had already committed their crude oil to another entity, causing the setback.
However, he assured that this delay is momentary, and the refinery will exclusively use Nigerian crude oil as of November 2023.
Notably, Edwin emphasized that the purchase of Nigerian crude oil would be conducted in US dollars rather than the local currency, the naira, due to the refinery’s location in a free trade zone on the outskirts of Lagos.
He mentioned that the NNPCL would supply some crude at discounted prices due to its equity stake in the project.
In a nod to its versatility, Edwin revealed that the Dangote Refinery can process various African crudes, Middle Eastern Arab Light, and even US light-tight oil.
He stated, “We can take even some of the Russian grades… if the global system opens up to allow us to receive them.”
He also highlighted that a significant portion of the production would fulfill Nigeria’s domestic demand, with excess gasoline meeting international standards being exported to other African markets, the United States, and South America.
Jet fuel is slated for export to Europe, while diesel will be supplied to sub-Saharan Africa.
Edwin expressed confidence in the refinery’s potential, describing it as “enormously beneficial to the country” and highlighting its contribution to establishing a reliable supply of environmentally-friendly refined products while bolstering Nigeria’s foreign exchange reserves.
He emphasized the refinery’s role in addressing fuel supply challenges in West Africa, particularly in the wake of Nigeria’s removal of fuel subsidies, which had led to a thriving illicit gasoline market due to price fluctuations.
Edwin concluded by reaffirming Aliko Dangote’s commitment to Nigeria, stating that the revenues generated from the refinery’s operations would be reinvested to fuel further developments in the country. “The money will be coming back in, and it will go for further investments,” he stated. “Aliko Dangote is from Nigeria, and his focus is always on Nigeria.”