Dangote Petroleum Refinery has declared its intention to increase production from 350,000 barrels per day to 500,000 barrels capacity by July/August.
Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, made this declaration during an onsite visit to the Dangote Refinery at Ibeju-Lekki, Lagos to reassure Nigerians on the commencement of Premium Motor Spirit (PMS) also known as petrol production this July.
Devakumar assured that such a laudable step will help harness Africa‘s abundant crude oil reserves which will be refined locally, stressing that Dangote Refinery is poised to embark on a virtuous cycle of industrial development, job creation, and economic prosperity.
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Edwin also noted that products from the $20 billion facility are of high quality and meet international standards, saying that it can meet 100 per cent of Nigeria’s demand for petrol, diesel, kerosene, and aviation Jet, with surpluses available for export.
Also, the international financial analytics corporation, S&P Global, described the 650,000 barrels per day refinery as a laudable step by Dangote refinery, pointing out that such a move will go a long way in resolving Nigeria’s foreign exchange (forex) thereby reducing pressure on naira.
Director and Lead Analyst, Sovereign and International Public Finance Ratings, S&P Global Ratings, Ravi Bhatia, said Dangote refinery is capable of transforming Nigeria into a vibrant economic hub and net exporter of petroleum products.
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“It is a very impressive facility, able to process 650,000 barrels a day, when in full capacity. It is the largest single-train refinery complex in the world. It came out quite quickly. Nigeria is a big exporter of crude but has issues with importing refined fuels. So, there is a gap in the market where crude can be refined in Nigeria, save money that way, and potentially save some foreign exchange. This will be positive for the economy in the medium term. It looks positive from our assessment,” Bhatia said after an over four-hour tour of the facility.
The S&P team commended the President of Dangote Industries Limited, Aliko Dangote, for integrating advanced technologies and quality control measures, including a state-of-the-art Central Control Unit ensuring smooth automation of operations.
Currently operating at 350,000 barrels per day capacity, Edwin said the refinery is slated to scale up to at least 500,000 barrels per day capacity by July/August, commencing the refining of petrol and ultra-low sulphur diesel.
“The refinery can produce the best quality products in the world, Euro V grade. It is one of the energy-efficient refineries and it is highly environmentally friendly. It is sophisticated with a high level of automation. The largest single train refinery in the world is 100 per cent designed, engineered, and constructed by a Nigerian company as EPC contractor,” he said.
According to data from the National Bureau of Statistics (NBS) in its Foreign Trade Statistics for the Fourth Quarter of 2023, Nigeria spent approximately ₦12tn on the importation of petroleum products in 2023, including petrol. This figure marks an 18.68 per cent ease compared to the ₦10tn spent on fuel imports in 2022.
