Dangote Group has announced that its refinery would be commissioned by the end of first half in 2021.
The Group Executive Director, Dangote Group, Devakumar Edwin, explained that when commissioned, the facility would meet 100% need of the country and export balance.
When production starts, the refinery will be able to process 650,000 barrels of crude oil per day into refined petroleum products. This will help Nigeria become an oil refining country and oil exporter as the country’s refineries are in dilapidated state. The capacity of the Dangote Refinery would eliminate fuel import from other regions into Nigeria.
No crude-for-fuel swap deal: Edwin also stated that the Dangote refinery would not be involved in NNPC’s (Nigerian National Petroleum Corporation) crude-for-fuel swap deal.
“We are going to buy the crude just at the export price and will sell our products at the import price, the crude swap is operating only for the importers of the product.”
Pipeline out of delivery routes: In a previous report by Nairametrics, Edwin disclosed that the plan is to transport the refined petroleum products by road and through the seaports when it begins operation. He also stated that the fuel produced by Dangote Refinery would be delivered by shuttle boats to Warri and Calabar while other deliveries would go in trucks.
Dangote eyes European and American markets: 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 gunning for European refineries’ market: 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.