The Nigerian National Petroleum Corporation Limited (NNPCL) is set to supply four crude oil cargoes from its February programme to the Dangote refinery, a $20 billion mega-project poised to become Africa’s largest refinery.
After years of construction delays, the Dangote refinery is on the brink of beginning operations and is scheduled to receive the crude oil cargoes from NNPCL next month, as revealed by three sources with direct knowledge of the matter, according to Reuters.
As Africa’s most extensive refinery, the Dangote facility has announced its potential commencement of test runs this week, having received six initial crude cargoes.
Nigeria, an influential member of the Organization of the Petroleum Exporting Countries (OPEC), presently depends on imports for the majority of the fuel it consumes. Edwin Devakumar, the Group Executive Director for Strategy, Portfolio Development, and Capital Projects at Dangote, clarified that the company did not request cargoes from NNPCL for January, emphasizing the cautious approach to prevent unnecessary inventory buildup and associated costs.
Dangote’s refinery, with an initial processing capacity expected to reach 350,000 barrels per day (bpd), aims to achieve full capacity by the end of the year.
The refinery’s executive noted that they plan to run operations for 8-10 days before lining up additional cargoes, provided everything progresses smoothly. In addition to NNPCL, the refinery is exploring crude supplies from other countries, diversifying its sources for greater flexibility.
The successful operation of the Dangote refinery is anticipated to significantly impact Nigeria’s refining capacity, reducing the nation’s reliance on fuel imports and bolstering its self-sufficiency in the oil and gas sector.
