Fuel palaver to end with Dangote Refinery producing in 2023
By Jeph Ajobaju, Chief Copy Editor
Dangote Refinery is expected to end almost all of Nigeria’s fuel troubles when it starts production despite the new shift in date from 2022 to late 2023.
The refinery in Lekki Free Zone in Lagos has capacity to produce 650,000 barrels per day (bpd) and will be Africa’s biggest oil refinery and the world’s biggest single-train facility when it comes on stream.
A report by Chapel Hill Denham titled, “Dangote Refinery can provide the needed breather for Nigeria’s public finances”, reiterates that Dangote Refinery will surpass Skikda Refinery in Algeria (366kb/d) and Port Harcourt Refinery (210kb/d).
The report says Dangote Refinery offers a ray of hope amid recurring fuel chaos in Nigeria worsened by the failure to refine crude in any of the four government refineries in Kaduna, Warri, and Port Harcourt which has two.
Chapel Hill Denham noted that Nigeria depends on imported refined fuel even as the four refineries have a combined capacity for 445 kb/d.
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Dangote Refinery at full capacity
Dangote Refinery is planned to produce 66 million litres of PMS, ATK, AGO, HHK, slurry, and other petroleum products with a capability to refine 650 kb/d of crude.
“We believe change is imminent, with Dangote Refinery looking set to begin operation towards the twilight of 2023,” the report added, per Nairametrics.
“If fully utilised, we believe the refinery can redefine Nigeria’s domestic production of white products (petrol, Automotive Gasoline Oil, AGO and Dual Purpose Kerosene, DPK) and potentially turn the country into a net exporter.
“That said, in this report, we present what we learnt during our last visit to the Dangote Refinery.”
Nigeria’s oil output
Nigeria’s crude produce rose in May by 70,000 bpd to 1.42 million per day (mbpd).
A revised target of 1.772 mbpd for June was set by OPEC, up from 1.735 mbpd in May.
But Nigeria is struggling to meet quotas with production at 1.24 mbpd in March and vast oil theft.