Dangote Refinery Postpones Petrol Production to Mid-July

iexclusivenews – Africa’s largest oil refinery, Dangote Refinery, has announced a revised timeline for the production of premium motor spirit (PMS), commonly known as petrol.

Initially slated for June, the production date has now been moved to mid-July.

Confirmation from Aliko Dangote

Aliko Dangote, the President and CEO of the refinery, confirmed the new production date during a press briefing at the $20 billion facility in Lagos on Monday.

He attributed the delay to minor setbacks, necessitating the shift from the originally proposed June to mid-July.

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New Production and Supply Schedule

Dangote stated that the refinery will commence petrol production between July 10 and 15.

The supply to local marketers is expected to begin in the third week of July.

“We had a bit of delay, but PMS will start coming out by 10 to 15 of July. But then we want to keep it in tank to make sure that it settles. So by the third week of July, we’ll be able to take it into the market,” Dangote explained.

Background and Previous Expectations

Earlier reports had indicated that the Dangote refinery would begin petrol production and supply in June.

Analysts at Standard and Poor’s Global (S&P Global) Commodities Insights had predicted that the refinery would start supplying petrol in the fourth quarter of this year, particularly in June.

However, the revised timeline now points to mid-July.

Exportation of Jet Fuel and Diesel

In the meantime, the refinery has commenced the supply of jet fuel and diesel to domestic marketers.

Additionally, the $20 billion facility has started exporting its first jet fuel cargo to Europe.

The initial shipment, loaded onto the vessel “Doric Breeze,” departed from the Lekki Free Zone in Lagos on May 27 and is en route to Rotterdam, Netherlands, according to data from S&P Global Commodities at Sea.

Significance of the Dangote Refinery

The Dangote refinery is poised to significantly reduce Nigeria’s reliance on imported petroleum products.

Despite being Africa’s most populous country and top oil producer, Nigeria imports nearly all of its fuel due to insufficient refining infrastructure. The new refinery aims to bridge this gap.

Dangote emphasized that the refinery is designed to be one of the world’s leading petroleum refineries.

“What we are doing is to be able to export petroleum products to anywhere and compete with any company.

By next week, we’ll be producing about ten thousand ppm in terms of diesel, which now what’s happening in that we import about 2 to 3 thousand. We will produce the best,” Dangote added.