Dangote Refinery Set To Begin Diesel And Jet Fuel Production In October
The Dangote Refinery, which is expected to be the largest single-train refinery in the world, has announced that it will start producing diesel and jet fuel in October 2023.
The refinery, located in Lagos, Nigeria, has a planned capacity of 650,000 barrels per day (b/d) and will process a variety of crude grades from Nigeria and other countries.
The Dangote Group Executive Director, Devakumar Edwin, confirmed this in an interview with S&P Global Commodity Insights. He said that the refinery is ready to receive crude oil and is waiting for the first vessel to arrive.
He also revealed the challenges that the refinery faced with securing crude supply and how it delayed the launch of the facility.
According to Edwin, the Nigerian National Petroleum Corps (NNPC), which is a shareholder in the project, could not supply the refinery crude oil until November, because it had already committed its crude on a forward basis to someone else. Therefore, the refinery had to source crude from other trading houses.
Edwin said that this was a temporary setback and that the refinery would run exclusively on Nigerian crude, which is sweet and low in sulfur, by November.
He added that the refinery could also process most African crudes, except for heavy Angolan grades, as well as Middle Eastern Arab Light and even US light tight oil.
He said that the refinery’s large scale meant that being “solely dependent on Nigerian crude would not be advisable”, and that it would diversify its crude basket to optimize its operations and profitability.
The Dangote Refinery is expected to make Nigeria self-sufficient in fuels while leaving ample for export.
It will also produce other products such as gasoline, kerosene, naphtha, liquefied petroleum gas, polypropylene and sulfur. The refinery is part of the Dangote Group’s vision to transform Nigeria’s economy and create jobs.
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