Dangote Refinery: Diesel, Aviation Fuel Hit Market January, Petrol Delayed

The Dangote Petroleum Refinery is scheduled to commence the production of Automotive Gas Oil (diesel) and JetA1 (aviation fuel) in January 2024, while the production of petrol is encountering delays due to the phased supply of crude oil.

Reports indicate that the refinery needs a minimum of six million barrels of crude oil to initiate full-scale production of refined petroleum products, including AGO, PMS, Jet A1, and Dual Purpose Kerosene (kerosene). As of last week, the facility received one million barrels of crude oil, with the remaining five million barrels expected to arrive in five additional instalments.

Situated in the Dangote Industries Free Zone, Ibeju-Lekki, Lagos, Nigeria, the Dangote Petroleum Refinery is a subsidiary of Dangote Industries Limited. With a capacity to refine 650,000 barrels of crude oil per day, the refinery covers approximately 2,635 hectares in the Lekki Free Trade Zone.

A previous report on November 2, 2023, highlighted the challenges faced by domestic refineries, including the Dangote refinery, due to a lack of crude oil supply.

This setback led to the refinery missing its October production projection. The delay in reaching production targets raised concerns about the continued dependence on petrol imports in Africa, particularly Nigeria.

Following The PUNCH’s report, the Nigerian National Petroleum Company Limited swiftly declared on November 3, 2023, its intention to provide six million barrels of crude oil to the Dangote Refinery, but currently, this commitment has not been fulfilled.

However, the Dangote Refinery’s management verified on Friday that they had received one million barrels of crude oil. They stated that this delivery is anticipated to facilitate the production of refined products within the facility.

“In a major step towards boosting Nigeria’s domestic refining capacity and attaining energy security (self-sufficiency), Dangote Petroleum Refinery and Petrochemicals plant has purchased one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited, one of the largest trading companies in Nigeria as well as globally, trading over eight million barrels of crude oil per day,” the oil firm had stated.

However, when The PUNCH sought confirmation on Sunday regarding the commencement of refined PMS production based on the one million barrels received on Friday, an official from the company clarified that Nigerians should anticipate the production of diesel and aviation fuel in January.

The official further elaborated that the facility needs a minimum of six million barrels of crude to initiate full-scale production of refined petroleum products. Unfortunately, what the facility received last week was only one million barrels.

“For a 650,000bpd capacity refinery, it requires a minimum of six million barrels to start production, and what we have done now is to receive one million barrels, and it is being discharged,” the impeccable source, who pleaded not to be named due to lack of authorisation to speak on the matter, stated.

“So it is just one million barrels for now, and that means we need to take it in instalments for six times, which is six instalments of one million barrels each,” the source added.

The official clarified that the receipt of one million barrels would produce diesel and aviation fuel. Emphasising the point, they highlighted that the production of PMS, kerosene, and other refined products would follow as the company secures additional crude cargoes.

“Ultimately, what that (the one million barrels receipt) means is that by January, maybe in the second week, we should start having diesel, after which aviation fuel will come before we now cascade to PMS,” the source stated.