Dangote discloses fuel delivery channels, refinery to explore European and American markets

Dangote Group has stated that contrary to expectation, Dangote Refinery won’t transport its refined petroleum products via pipeline to consumers. There were expectations that congested ports and dilapidated roads in Lagos would compel the company to build a pipeline network, but the company has disclosed that it would deliver its products through other alternative channels.

According to the Dangote Group Executive Director, Devakumar Edwin, the plan is to transport the refined petroleum products by road and through the seaports when it begins operation. Although the timeline for the completion of the Dangote refinery is not clear, Edwin’s statement has ruled out any pipeline route.

Nairametrics had previously reported that the refinery was expected to be completed by 2020 but challenges surrounding the refinery had seen the completion date postponed to 2022. When production starts, the refinery will be able to process 650,000 barrels of crude oil per day into refined petroleum products.

Dangote Refinery Atmospheric tower
Dangote Refinery Atmospheric tower

Pipeline out of delivery routes: The decision is not surprising as Dangote Group is currently repairing and expanding the roads linking up with Lekki. The refinery is situated at the Lekki Free Zone in Lagos. The state government is also reportedly building another toll road to aid shipments.

Speaking at the Oil Trading and Logistics Expo in Lagos, Edwin was said to have stated that the fuel produced by Dangote Refinery would also be delivered by shuttle boats to Warri and Calabar while other deliveries would go in trucks.

Eliminating fuel import: Edwin also stated that the capacity of the Dangote Refinery would eliminate fuel import from other regions. The company also has its sight on other markets which include Europe and Latin America. These markets would have diesel, gasoline and other fuels delivered to them. The diesel is expected to meet winter standard in Europe, with high quality that will make it suited for any market.

Dangote Refinery vs European Refinery: The Dangote Refinery will be a problem for European refinery because they will be competing in the same market in West Africa. Most of the gasoline consumed in West Africa is supplied by European refinery, and with African leaders supporting the operation of Dangote Refinery, the status quo is expected to change.



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