Dangote Refinery kicks off petrol production test-run – Report
The Dangote Refinery, Africa’s largest, has commenced test runs for the production of Premium Motor Spirit (PMS), commonly known as petrol.
Full-scale production is anticipated to begin by mid-September 2024, marking a significant milestone for Nigeria’s oil and gas sector.
According to a report by Reuters, citing a note from industry monitor IIR Energy, the 650,000-barrel-per-day refinery is on track to start producing petrol after initially focusing on the production of diesel and other distillate fuels.
This development follows earlier announcements that petrol deliveries from the refinery were expected to begin in July, though previous targets had been missed.
“There is a possibility that further delays could occur,” IIR Energy noted in its report, indicating that the refinery’s timeline remains subject to adjustments.
Once fully operational, the Dangote Refinery is expected to significantly reduce Nigeria’s reliance on imported refined petroleum products.
The refinery is also poised to disrupt the existing Europe-to-Africa fuel trade, potentially altering the dynamics of fuel supply across the continent.
Earlier this month, the Federal Government announced that it had reached an agreement with Dangote Petroleum Refinery to begin the rollout of petrol in September 2024.
This announcement was made during a meeting in Abuja, where the Federal Government’s Implementation Committee discussed the sale of crude oil to local refineries in naira.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, confirmed that crude oil sales to Dangote Refinery and other local refineries would commence on October 1, 2024.
This move is expected to further enhance Nigeria’s domestic refining capacity and reduce the nation’s dependence on foreign oil products.
During the same meeting, Dr Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, and the Chairman of the Technical Sub-Committee, reported that the first delivery of petrol from Dangote Refinery is anticipated next month, as per existing agreements.
The Dangote Refinery, built at an estimated cost of $20 billion, was commissioned in May 2023 and has since been a focal point of Nigeria’s efforts to boost its domestic refining capacity.
The full operation of the refinery is set to be a game-changer for the Nigerian economy, with widespread implications for both the local and international energy markets.
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