Dangote refinery promises to start producing jet fuel and diesel as from October this year

NIGERIA'S Dangote Refinery is set to begin producing refined petrol and other petroleum products including diesel and jet fuel as from next month in a move set to end the country's dependence on imports.

In May this year, former president Muhammadu Buhari opened the Dangote Refinery and the president of the Dangote Group, Alhaji Aliko Dangote, promised that from August onwards, Nigeria will not have any petrol supply problems. However, four months after the refinery was officially opened, it is yet to refine a single barrel of petroleum or produce one drop of petrol.

With concerns mounting over the failure of the refinery to start producing, Devakumar Edwin, a Dangote Industries executive director, said as from newt month, the facility would start producing up to 370,000 barrels per day of diesel and jet fuel. He added that by November, the refinery would start producing petrol.

Mr Edwin pointed out that the refinery would initiate a gradual increase in petrol production, aiming to reach 650,000 barrels per day by November 30. He emphasised the refinery’s readiness to receive crude oil from suppliers.

According to Mr Edwin, the Nigerian National Petroleum Corporation (NNPC) has already committed its crude oil to another entity on a forward basis, causing a temporary delay. He said, however, that the setback is momentary, and the refinery would soon run exclusively on Nigerian crude oil as from November this year.

He noted that the Nigerian oil would be purchased in US dollars and not naira because the refinery is located in a free trade zone on the outskirts of Lagos but the NNPC will supply some crude at knockdown prices due to its equity stake. Mr Edwin further stated that, aside from heavy Angolan grades, the Dangote refinery can process most African crudes, as well as Middle Eastern Arab Light and even US light-tight oil.

Mr Edwin said: “We can take even some of the Russian grades if the global system opens up to allow us to receive them. Basically, if you look at our production profile, 50% of our production will meet 100% of the requirements of the country.

“Excess gasoline, which will be 10 ppm sulfur Euro 5 quality, will be exported to other African markets as well as the US and South America, although the volumes will be relatively small. Meanwhile, jet fuel will be exported to Europe and diesel will be sold in sub-Saharan Africa.”

He added that the refinery would be enormously beneficial to the country by establishing a reliable supply of environmentally-friendly refined products and bringing a huge amount of foreign exchange into the country. Furthermore, Mr Edwin noted that the refinery would play a pivotal role in alleviating the fuel supply challenges faced by import-dependent West Africa, worsened by Nigeria’s recent removal of fuel subsidies.

Mr Edwin added: “The money will be coming in and it will go for further investments. Aliko Dangote is from Nigeria and his focus is always on Nigeria.”