Dangote Refinery Prepares for Launch with 6 Million Barrel Deal
Dangote Refinery, has successfully secured its inaugural cargo deal, boasting an impressive 6 million barrels ready for delivery.
As the much-anticipated project gears up to commence operations at 350,000 barrels per day next month, it holds the promise of transforming oil trading dynamics in the Atlantic Basin.
Set to become a pivotal player in the energy sector, the refinery aims to disrupt the prevailing reliance on fuels sourced from Europe and the United States to power vehicles, trucks, and generators across the African continent.
It is anticipated that the refinery will commence production of diesel, kerosene, and jet fuel as early as December, marking a significant stride towards energy self-sufficiency.
Aliko Dangote, expressing his disappointment in Nigeria’s historical inability to refine its abundant crude oil despite being a major producer for over 50 years, affirmed that the country is on the cusp of recommencing the production of refined petroleum products in a matter of weeks.
The journey, though fraught with challenges and exceeding the budget by about $8 billion, is viewed as a monumental achievement that will shape the nation’s energy landscape.
Dangote acknowledged the formidable challenges faced during the project, emphasising that such a venture in Nigeria would be a rarity for the next two decades.
He credited the successful realization of the multi-billion-dollar project to unwavering determination and a commitment to quality, debunking notions of cost-cutting or corner-cutting.
Contrary to doubts expressed by the International Monetary Fund (IMF) regarding the refinery reaching its full 650,000 barrels a day capacity by 2025, Dangote remains optimistic, asserting that the ambitious target could be achieved by the end of 2024.
Situated in the Lekki Free Trade zone in Lagos State, the Dangote Refinery, once fully operational, is poised to transform Nigeria into a net exporter of fuels, a strategic shift for a nation heavily reliant on imports.
Addressing concerns about crude supply from the Nigerian National Petroleum Company Limited (NNPCL), which owns a 20% stake in the refinery, Dangote emphasised the resolution of supply issues, discouraging any blame games.
Additionally, he downplayed speculations about NNPC negotiating for a larger share, stating that the current allocation is satisfactory.
Notably, a one-year deal is in place for the NNPCL to supply six cargoes or 200,000 barrels of crude oil a day to the refinery starting in December.
The commissioning process, initiated in May this year, marked the beginning of testing different units, ensuring the seamless production of various products from gasoline to diesel.
Former President Muhammadu Buhari inaugurated the facility a few months ago, signaling the culmination of this ambitious venture.
Source: Leadership News
