CURRENT REPORT BLOG
Dangote Refinery, Africa’s largest oil refinery, marked a significant milestone with the reception of its first one million barrels of Agbami crude from Shell International Trading and Shipping Company Limited (STASCO). This development is a crucial step toward bolstering Nigeria’s local refining capacity and reducing its dependence on imported petroleum products.
Crucial First Step
In a statement released on Friday, Dangote Refinery revealed that the inaugural one million barrels of crude, representing the first phase of a six-million-barrel supply, will sustain the initial 350,000 barrels per day required for the commencement of crude production at the refinery. The cargo sailed to the facility’s Single-Point Mooring (SPM) and was efficiently discharged into the refinery’s crude oil tanks.
Upcoming Supplies
The next four cargoes, slated to arrive in two to three weeks, will be supplied by the Nigerian National Petroleum Company Limited (NNPCL), followed by the final six cargoes from ExxonMobil. This strategic supply plan aims to facilitate the initial refinery run, kick-start the production of diesel, aviation fuel, and LPG, and eventually lead to the production of Premium Motor Spirit (PMS).
Implications for Nigeria
Despite being one of Africa’s largest crude producers, Nigeria has long relied on imports due to underperforming state-run refineries. The Dangote Refinery’s operationalization signals a turning point in the Nigerian energy sector, reducing dependence on imports and enhancing self-sufficiency. The facility, commissioned in May, has the capacity to process 650,000 barrels per day when at full capacity.
Game-Changer for the Energy Sector
The refinery’s delayed operationalization, initially expected in June, was attributed to a lack of crude oil supply. However, with the recent crude shipment, the facility is poised to revolutionize Nigeria’s energy landscape. Aliko Dangote, President of the Dangote Group, expressed optimism about ramping up the refinery to its full capacity in the coming months, emphasizing the significant milestone when the first batch of products reaches the Nigerian market.
