Dangote Refinery Set To Deliver First Fuel In Weeks

Dangote Refinery is due to deliver its first fuel into the local market within weeks

According to reports, Dangote Refinery is expected to deliver its first fuel to the local market in a few weeks, marking a significant step toward Nigeria's long-awaited energy independence.

The majority of the fuel consumed by the nation has historically been imported, but the $20 billion refinery is expected to change the industry's power and profit dynamics significantly by making the nation a net exporter of fuel to other West African nations.

Nigeria has been exporting less oil in recent months as a result of this development, and it may soon import less gasoline and diesel from oil majors and trading houses for domestic use. This is a multibillion dollar annual trade that has continued for decades.

A source with direct knowledge of the situation told Reuters that 4-million barrels will be supplied to the 650,000 barrel per day (bpd) plant in March by Nigeria's national oil company, NNPC Ltd. This will bring the total supplies since December to 12-million barrels, or roughly 100,000 bpd.

The source also said that NNPC was distributing cargoes on a spot basis to the refinery.

Dangote is also set to receive two cargoes of US WTI crude from oil trader Trafigura, two of the sources said.

The Dangote executive stated that tests to ascertain whether the supplies fulfill quality standards are nearing completion.

Dangote has stated that it will begin by refining 350,000 bpd and intends to ramp up to full production later this year. Reaching full capacity could take months.