Nigeria is on the verge of becoming a major player in the global oil market as the Dangote refinery, the largest single-train refinery in the world prepares to start operations in the coming months.
The refinery, which has a capacity of 650,000 barrels per day, is set to receive four more crude oil cargoes within the next two weeks, according to the Dangote Group. The Nigerian National Petroleum Company (NNPC) will supply the next four cargoes, with the final cargo expected from ExxonMobil.
The refinery has already received its maiden cargo of one million barrels from Shell International Trading and Shipping Company Limited (STASCO) on November 29, 2023. The cargo was discharged into the refinery’s crude oil tanks through its Single Point Mooring (SPM) system, located 25 kilometers from the shore.
The influx of crude oil will enable the refinery to commence initial operations and produce Premium Motor Spirit (PMS), diesel, aviation fuel, and LPG. The refinery is designed to process 100 percent Nigerian crude with the flexibility to process other crudes from Africa, the Middle East, and the US.
The refinery will meet 100 percent of Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation jet, and also have a surplus of each product for export. The refinery will also produce low-sulfur fuels that conform to the US EPA, European emission norms, and the Department of Petroleum Resources (DPR) emission/effluent norms as well as the African Refiners and Distribution Association (ARDA) standards.
The Dangote refinery is a key project for Nigeria’s energy independence and economic development. The project is expected to create over 250,000 direct and indirect jobs, reduce the country’s dependence on imported fuel, save foreign exchange, and boost the country’s GDP.
The project has also received support from the federal government, which granted the refinery a pioneer status that exempts it from paying company income tax for five years. The government also approved the establishment of a dedicated corridor for the movement of heavy equipment to the refinery site.
The refinery is part of the Dangote Group’s vision to become a global force in the oil and gas sector. The group, led by Africa’s richest man, Aliko Dangote, has invested over $10 billion in the refinery project, making it the largest private sector investment in Africa.
“We are delighted to have reached this significant milestone. This is an important achievement for our country, demonstrating our ability to develop and deliver large capital projects. Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market,” Dangote said.
The Dangote refinery is a testament to the resilience and ingenuity of Nigerian entrepreneurs, who are determined to overcome the challenges of the oil and gas industry and contribute to the nation’s progress. The refinery is poised to transform Nigeria’s energy landscape and usher in a new era of prosperity and growth.
Source: Business Day
