Nigeria’s 650,000 b/d Dangote refinery has commenced fuel production, the Dangote Group announced on January 12. The facility has the potential to end the nation’s reliance on gasoline imports, according to S&P Global Commodity Insights.
The refinery, a US$19 billion investment, has initiated the production of diesel and jet fuel, with market availability expected soon after receiving regulatory approvals, S&P Global said. Dangote is expected to expand into producing premium motor spirit (gasoline), according to a statement by the Nigerian conglomerate.
The refinery is positioned to meet Nigeria’s entire demand for all refined products, including gasoline, diesel, kerosene, and aviation jet, with a surplus for export. The refinery has received six million barrels of crude oil, with the first delivery recorded on December 12, 2023.
Devakumar Edwin, a Dangote executive, indicated in September that the refinery’s initial production would be around 370,000 b/d, eventually increasing to 650,000 barrels per day (bpd). However, S&P Global analysts project that the refinery will not reach full operating capacity until mid-2025.
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The refinery can load 2,900 trucks per day, produce jet fuel conforming to Euro V specifications, and adhere to emission regulations set by the World Bank, U.S. EPA, European Union, and Nigerian authorities. The final crude oil cargo, essential for test runs, was received last week from the Nigerian National Petroleum Corp (NNPC), which holds a 20% stake in the refinery.
Situated on the outskirts of Lagos, Nigeria’s commercial hub, the refinery’s completion was officially announced in May. However, production was delayed due to a lack of domestic crude feedstock. NNPC agreed last December to supply 6 million barrels of crude oil to the Dangote refinery.
The project has faced numerous delays and cost overruns. Nigeria has historically exported most of its crude due to inadequate local refining capacity. The country’s state-owned refineries are currently non-operational, pending repairs.
The refinery’s operationalization is expected to leave open market opportunities for Guyana’s growing oil output to fill.
