The $20 billion Dangote refinery is expected to receive four crude oil cargoes, or four million barrels, from Nigerian National Petroleum Corporation Limited (NNPCL) as part of its February program. Six million barrels of crude have already been delivered to the plant; the four cargoes are projected to raise the overall supply to around one billion barrels.
Reuters claims that the plant acquired enough fuel to perform a test run. It stated: “OPEC member Nigeria currently relies on imports for most of the fuel it consumes, but the Dangote refinery is expected to make it self-sufficient and able to export fuel to neighbours in West Africa, potentially transforming oil trading in the Atlantic Basin.
“Dangote received 1 million barrels of Nigeria’s Agbami crude on Monday, lifting total volumes received since December to 6 million barrels. NNPC supplied the 650,000 barrel per day (bpd) plant with four of the cargoes, two of the sources said.”
Edwin Devakumar, group executive director of Dangote for strategy, portfolio development, and capital projects, stated that the company did not ask NNPC for shipments in January.
“We are starting the refinery and if we continue to line up cargoes our inventory will build up as well as costs,” he said. “If everything goes well, we will run 8-10 days of operation then we will begin to line up cargoes.”
The refinery is getting ready to handle crude oil shipments. Although no specifics have been revealed yet, the corporation is thinking of obtaining its crude oil supply from other nations.
Four cargoes from the Nigerian National Petroleum Corporation (NNPC) have been nominated by the refinery for February, according to one source. Also, NNPC, according to a different source, is holding off on transferring more oil until the plant’s test runs are over. The refinery’s initial processing capacity is anticipated to be 350,000 barrels per day, with plans to eventually ramp up to full capacity.
The Managing Director of Dangote Ports Operations, Akin Omole had said: “Once the 6 million barrels are fully delivered, it will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and Liquefied Petroleum Gas (LPG) before subsequently progressing to the production of Premium Motor Spirit (PMS).”
According to the company, “Dangote Oil Refinery is 650,000 barrels per day (BPD) integrated refinery project under construction in the Lekki Free Zone near Lagos, Nigeria. It is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility.”
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