- This initial batch is designed to sustain the facility’s ambitious goal of processing 350,000 barrels per day during its initial operational phase.
- The 650,000 barrels per day Dangote Petroleum Refinery can process most African crude grades as well as Middle Eastern Arab Light and even US Light tight oil as well as crude from other countries.
- A major step towards boosting Nigeria’s domestic refining capacity and attaining energy security (self-sufficiency).
Dangote Refinery, a 650,000 barrels per day plant has started operations by striking strategic alliances and resource acquisitions as it seeks to redefine Nigeria’s oil industry standards.
One such landmark development is the recent procurement by the Dangote Petroleum Refinery and Petrochemicals plant of 1 million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO).
This significant move marks a crucial step in the refinery’s journey, as it not only serves to facilitate the initial operational phase but also lays the foundation for the production of vital energy commodities, including diesel, aviation fuel, and Liquefied Petroleum Gas (LPG).
President of Dangote Group, Mr. Aliko Dangote stated: “We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market.”
Dangote Refinery to process Agbami crude
Country Chairman of Shell Companies in Nigeria, Mr Osagie Okunbor stated: “We welcome the startup of a refinery that is designed to produce gasoline, diesel, and low-sulphur fuels for Nigeria and across West Africa and are happy to be enabling it.”
As the refinery sets the stage for its inaugural run, the acquisition of Agbami crude not only ensures a seamless kick-start to production but also underscores the refinery’s commitment to meeting diverse energy demands, with plans to progress to the production of Premium Motor Spirit (PMS).
STASCO is one of the largest trading companies in Nigeria as well as globally, trading over 8 million barrels of crude oil per day. The STASCO cargo contained 1 million barrels from Agbami and sailed to Dangote Refinery’s Single Point Mooring (SPM) where it was discharged into the refinery’s crude oil tanks.
The Dangote Petroleum Refinery’s acquisition of the maiden 1 million barrels of crude oil, as the inaugural phase of the planned 6 million barrels from various suppliers, signals a crucial advancement in the development of this monumental energy facility.
This initial batch is designed to sustain the facility’s ambitious goal of processing 350,000 barrels per day during its initial operational phase. The strategic sequencing of suppliers in subsequent shipments adds a layer of complexity and collaboration to this venture, with the Nigerian National Petroleum Corporation (NNPC) set to contribute the next four cargoes within the next two to three weeks, followed by ExxonMobil supplying the final of the six cargoes.
This coordinated effort among industry giants reflects a commitment to ensuring the seamless functioning of the refinery and underscores the collaborative nature required to bring such colossal projects to fruition.
Furthermore, this latest development carries substantial implications for Nigeria and the broader West African region. The chronic challenges in fuel supply faced by Nigeria, a nation that heavily relies on imported refined petroleum products, have long been a point of concern.
Read also: The Dangote oil refinery will transform Nigeria’s energy sector
Dangote Refinery promises self-sufficiency in Nigeria
The Dangote Petroleum Refinery, through its progressive approach and commitment to significant production capacity, is poised to alleviate these challenges. By playing a pivotal role in addressing fuel supply constraints, the refinery stands not only as a beacon of self-sufficiency for Nigeria but also as a potential catalyst for stability and energy security across West African countries.
The strategic timing and collaboration among suppliers enhance the refinery’s role in contributing to regional economic resilience and development.
The Dangote Petroleum Refinery stands as a testament to Nigeria’s commitment to achieving self-sufficiency and resilience in the energy sector. Designed with a capacity to process 650,000 barrels per day, this state-of-the-art facility is not only tailored for 100 per cent Nigerian crude but also exhibits remarkable flexibility, accommodating a spectrum of crude grades from across Africa, the Middle East, and even the United States. The refinery’s adaptability underscores its strategic importance in diversifying the nation’s energy sources and fostering international collaborations.
A key highlight of the Dangote Petroleum Refinery’s capabilities lies in its ability to meet the entirety of Nigeria’s refined product requirements. From gasoline and diesel to kerosene and aviation jet fuel, the refinery is poised to play a pivotal role in satisfying the nation’s domestic demand.
Furthermore, the surplus production of these essential products positions Nigeria as a potential exporter, contributing to the nation’s economic growth and establishing it as a significant player in the global energy market. This surplus not only enhances the country’s economic standing but also fortifies its strategic position in the realm of energy diplomacy.
Strategic location
In terms of infrastructure, the refinery’s strategic location and advanced facilities further amplify its impact. Equipped with two Single Point Moorings (SPMs) located 25 kilometers from the shore, the facility ensures seamless intake of crude oil, while three separate SPMs facilitate the discharge of petroleum products.
The integration of these maritime facilities exemplifies the refinery’s commitment to efficient and streamlined operations. Moreover, with the capacity to load a staggering 2,900 trucks a day at its truck loading gantries, the refinery is not only a symbol of technological advancement but also a catalyst for regional economic development, providing opportunities for transportation and logistics industries.
Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available. In addition, all products from the refinery will conform to Euro V specifications.
The refinery is designed to comply with US EPA, European emission norms, and Department of Petroleum Resources (DPR) emission/effluent norms as well as African Refiners and Distribution Association (ARDA) standards.
