The Dangote oil refinery in Nigeria, a major project funded by Africa’s richest man Aliko Dangote, is poised to receive its initial shipment of crude oil. The first cargo, comprising 1 million barrels of Agbami crude oil from Shell International Trading and Shipping Co (STASCO), is set to arrive on Friday. This significant event marks the beginning of operations for the refinery, which has experienced several delays.
Once operational at full capacity, the refinery, capable of processing 650,000 barrels per day, is expected to transform Nigeria from an importer to a net exporter of fuels. This development is a critical step for Nigeria, an OPEC member that has been heavily dependent on fuel imports despite being Africa’s largest oil producer.
The Dangote Group disclosed that this initial cargo is part of a larger procurement of 6 million barrels of crude, which will facilitate the refinery’s initial phase of operation. This phase includes the production of diesel, aviation fuel, and Liquefied Petroleum Gas, eventually leading to the production of Premium Motor Spirit.
Dangote oil refinery in Nigeria.
The Dangote Group further revealed that the subsequent four cargoes will be supplied by the Nigerian National Petroleum Corporation (NNPC) within the next two to three weeks, followed by a final shipment from ExxonMobil.
Nigeria, which spent a staggering $23.3 billion on petroleum product imports last year and consumes approximately 33 million liters of petrol daily, anticipates significant economic benefits from the refinery. Aliko Dangote, in a statement, emphasized the company’s focus on ramping up the refinery to full capacity in the coming months.
Commissioned in May after years of delay, the Dangote refinery represents a $19 billion investment and is one of the single largest investments in Nigeria’s history. This milestone is seen as a turning point for Nigeria’s fuel supply issues and is expected to significantly impact the West African region’s fuel supply dynamics.
