Africa’s largest oil refinery, the Dangote Refinery, has rescheduled the commencement of premium motor spirit (PMS) production, commonly known as petrol, from June to mid-July. Aliko Dangote, the President and CEO of Dangote Refinery, announced this adjustment during a press briefing at the $20 billion facility in Lagos.
Revised Production Schedule
– New Production Start Date: Between July 10 and 15.
– Supply to Local Marketers: From the third week of July.
The delay was due to minor setbacks that necessitated the shift from the originally planned June start date. Dangote emphasized the importance of ensuring the product settles properly in tanks before distribution.
“We had a bit of delay, but PMS will start coming out by 10 to 15 of July. But then we want to keep it in tank to make sure that it settles. So by the third week of July, we’ll be able to take it into the market,” Dangote stated.
Background and Previous Projections
The refinery was initially expected to begin petrol production and supply in June, based on various reports and predictions by analysts, including those from Standard & Poor’s Global Commodities Insights. Analysts had anticipated gasoline production to commence in the fourth quarter of the year, highlighting significant pressure from the Nigerian government to ensure substantial domestic supply.
Exportation and Domestic Supply of Fuel
Despite the delay in petrol production, the Dangote Refinery has already started supplying jet fuel and diesel to domestic marketers. Additionally, the facility has begun exporting jet fuel to Europe, with the first shipment leaving Lagos for Rotterdam, Netherlands, on May 27th aboard the vessel “Doric Breeze.”
Strategic Importance of the Refinery
The Dangote Refinery is poised to drastically reduce Nigeria’s reliance on imported petroleum products. Nigeria, despite being the largest oil producer in Africa, imports nearly all its fuel due to insufficient refining capacity. The new refinery aims to bridge this gap, positioning itself as a world-class facility capable of exporting petroleum products globally.
Aliko Dangote expressed confidence in the refinery’s capacity to compete internationally. “What we are doing is to be able to export petroleum products to anywhere and compete with any company. By next week, we’ll be producing about ten thousand ppm in terms of diesel. Currently, we import about 2 to 3 thousand. We will produce the best,” he added.
The Dangote Refinery’s adjusted production timeline signifies a critical step towards enhancing Nigeria’s self-sufficiency in petroleum products. With the upcoming start of petrol production and ongoing exports, the refinery is set to play a pivotal role in transforming Nigeria’s oil sector and reducing its dependency on imports.
