Dangote Refinery announces readiness to begin production after crude supply hits 6 million barrels

The Dangote Petroleum Refinery said on Monday, January 8, 2024, that it is ready to commence production of refined petroleum products after receiving the sixth consignment of one million barrels of crude needed for the facility’s initial operations.

A statement from the refinery confirmed the receipt of the last batch of six million barrels, saying that the plant will commence a test run soon.

The statement said: “Dangote refinery appears set to commence production of refined petroleum products with the receipt of the sixth batch of barrels of crude supplied by the Nigeria National Petroleum Corporation Limited.”

The statement said the fresh one million Agbami barrels of crude through the MT ALMI SUN was the last cargo to complete the initial six million barrels to be delivered to the facility for the commencement of operations by the refinery.

In December 2023, the refinery received the first one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited.

Since then, the refinery has received the crude in batches, with the last one arriving on Monday, January 8, 2024, at the Single Point Mooring at the Dangote Offshore Oil Terminal.

Punch reports that the Managing Director of Dangote Ports Operations, Akin Omole, said the refinery would be in an excellent position to start operation immediately after the six million barrels of crude are delivered.

Dangote refinery will not crash petrol price

He said that once the six million barrels are delivered, the 650,000 bpd-capacity refinery will kickstart the production of diesel, aviation fuel, and liquid petroleum Gas before moving on to petrol production.

Analysts believe that the commencement of production by the World’s largest single-train refinery will play a key role in easing the fuel supply hassles faced by Nigeria and other West African Countries.

The Dangote refinery can process most of Africa’s crude grade, Middle Eastern Arab Light, and US Light tight oil and crude from other countries.

Energy analyst Jonathan Ibeh said the refinery is Nigeria’s biggest hope in alleviating the challenges of petrol supply. He said the commencement of production by the refinery will not immediately crash the price of the petrol in the short-term.

“I don’t see a price reduction, but the price will decrease as more refineries begin production. Nigeria should focus on ensuring all its three refineries are back in shape. With this, Nigerians can have some reprieve.

The Dangote refinery is a commercial entity built to maximize profit and not act as a charity organization,” he said.