The Dangote Petroleum Refinery has ramped up its daily production to 85% of its 650,000 barrels per day capacity, and officials are optimistic about reaching full capacity within the next 30 days.
While the firm’s officials declined to disclose where the refinery will source its crude oil from, given the limited local supply, the 85% production capacity equates to 552,500 barrels per day.
The Vice President of Dangote Industries, Devakumar Edwin, shared with Reuters that the refinery is on track to reach full capacity in the near future.
He said, “We can go 100 per cent in 30 days.”
Earlier, a Dangote Group official had indicated that the refinery aimed to achieve full production by June 2025.
However, Edwin’s remark suggesting that the goal could be met in March signifies the refinery’s commitment to reducing fuel imports into Nigeria and Africa.
Africa’s largest refinery, built by Aliko Dangote in Lagos, began converting crude into various products, including diesel, naphtha, and jet fuel, in January of the previous year.
In September, it started producing petrol despite facing significant crude supply challenges, leading to controversies in Nigeria’s petroleum sector.
Despite limited local crude supplies, the refinery has made strides, competing with European refiners and affecting Europe’s petroleum market.
Due to insufficient local crude, the facility turned to imports and had an agreement with the Nigerian government to procure crude in local naira currency.
The Nigerian Upstream Petroleum Regulatory Commission noted that the refinery will require up to 550,000 barrels per day of crude from Nigerian producers between January and June this year.
The NUPRC also mentioned plans to block export permits for oil cargoes from producers failing to fulfill their domestic crude supply obligations to local refineries.
The Dangote refinery is also exploring new markets for its refined products. Aliko Dangote, the refinery’s chairman, revealed plans to send two cargoes of jet fuel to Saudi Aramco, marking part of the refinery’s expansion efforts. Edwin stated, “We are looking at all the markets right now.”
Additionally, a senior refinery official, speaking anonymously, confirmed that increasing the refinery’s production capacity will result in a substantial increase in the output of refined products.
The official elaborated, “It is like someone who used to cook only half a pot of rice and now can cook a full pot. Everyone will be well-fed, and that’s exactly what will happen.”
However, it remains unclear whether the increased production will translate into lower fuel prices at the loading stage, and the refinery’s specific procurement plans for crude oil are still unknown, as the officials did not disclose any details.
