Alhaji Aliko Dangote has announced that the Dangote Refinery has obtained a license to refine over 300,000 barrels of crude per day.
Speaking at the Saudi-Nigeria business roundtable in Riyadh on Saturday, Dangote emphasized the refinery’s readiness to commence refining activities soon, prioritizing the supply of petrol to Nigeria before expanding to other regions, including West Africa.
Dangote stated, “We do not want to start our refinery with foreign goods; we want to start with Nigerian crude. We are more than ready, and you will see our gasoline products soon.”
The refinery is expected to produce significant quantities, including 27 million liters of diesel, 11 million liters of kerosene, and 9 million liters of jet fuel.
It will receive crude from various producers in Nigeria, including the Nigerian National Petroleum Company Limited (NNPCL).
Nairametrics reported that the NNPCL is set to supply the Dangote refinery with up to six shipments of crude oil in December for testing purposes, part of a one-year agreement.
The December shipments are expected to total 200,000 barrels per day, with subsequent volumes to be determined based on mutual agreement and availability.
Devakumar Edwin, Executive Director at the Dangote Group, previously shared insights in September 2023, indicating plans to commence diesel and jet fuel refining operations by October 2023.
While the initial timeline was not met, Edwin outlined the refinery’s phased ramp-up to reach its full capacity of 650,000 barrels per day for petrol production by November 30.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has expressed its commitment to enforcing domestic crude oil supply obligations to local refineries.
Engr. Gbenga Komolafe, Chief Executive of the Commission, highlighted the importance of compliance with the Petroleum Industry Act (PIA) during a stakeholder meeting, particularly focusing on Section 109 empowering the NUPRC to allocate domestic crude oil supply obligations based on national demand.
Engr. Komolafe urged crude oil producers to consistently provide details regarding their committed and uncommitted barrels, emphasizing the comprehensive enforcement of all aspects of the PIA.