Nigeria's Dangote oil refinery has started supplying petroleum products to the local market, a major step in the country's journey towards energy self-sufficiency.
- Nigeria's Dangote oil refinery has started supplying petroleum products to the local market.
- Local oil marketers reached an agreement on the price of diesel at 1,225 naira ($0.96) per litre following a bulk purchase deal.
- Nigeria is one of the world’s leading oil-producing countries but due to a lack of functional refinery, all its crude oil is exported for refining.
This confirmation was provided by a company executive and fuel marketing associations.
Nigeria is one of the world’s leading oil-producing countries but due to a lack of functional refinery, all its crude oil is exported for refining and then imported back into the country. Dangote refinery is meant to close that gap.
Devakumar Edwin, an executive at Dangote Group, confirmed the arrival of diesel and jet fuel shipments in the local market.
What the Dangote Executive said:
"We have substantial quantities. Products are being evacuated both by sea and road. Ships are lining up one after another to load diesel and aviation jet fuel," Edwin told Reuters in an interview.
"Ships load a minimum of 26 million litres, though we try to push for 37 million litres vessels, for ease of operations."
Abubakar Maigandi, head of the Independent Petroleum Marketers Association of Nigeria, said that local oil marketers reached an agreement on the price of diesel at 1,225 naira ($0.96) per litre following a bulk purchase deal.
Maigandi noted that the association's members oversee about 150,000 retail stations throughout Nigeria.
Meanwhile, the Depots and Petroleum Products Marketers Association of Nigeria revealed that its members are in the process of securing letters of credit to procure petroleum products from Dangote.
“Our members are discussing with banks, and these talks have reached advanced stages. When we have our letters of credit, we will begin lifting products,” remarked Femi Adewole, the association’s executive secretary.
With a refining capacity of up to 650,000 barrels per day (bpd), the $20 billion refinery is expected to become the largest refinery in Africa and Europe upon reaching full operational capacity, which is expected later this year.
The facility, in addition to processing domestic feedstock, is designed to handle other African crudes, as well as supply from further afield, including the US and Saudi Arabia.
