Dangote’s $20bn Refinery Gets Third Crude Shipment, May Start Production in January

*Fourth shipment  on the way, company gearing up to commence operations at 350,000 bpd

Emmanuel Addeh in Abuja

The much-awaited Dangote refinery near Lagos has received its third shipment of 1 million barrels crude oil feedstock, with a fourth one expected to arrive before the end of the year.
It was gathered that the latest cargo came from Shell International Trading and Shipping Company Limited (STASCO), bringing the total volume of feedstock to 3 million barrels at the facility’s Single-Point Mooring (SPM).

Arise Television, THISDAY sister news channel reported yesterday that while the fourth shipment of crude is on the way, the company is gearing up to commence operations at 350,000 bpd, with the production of diesel and aviation fuel by the middle of January next year.
However, the refining of Premium Motor Spirit (PMS) or petrol will come at a later date, it was learnt. In a November interview, Aliko Dangote had said: “We’re more than ready and you will see our gasoline products soon.”

The 650,000 bpd capacity has been in the works and it aims to not only meet but exceed Nigeria’s demand for refined products, including petrol, diesel, kerosene, and aviation jet fuel.
Also, it anticipates surplus production for export purposes, potentially reshaping Nigeria’s standing in the global energy market and helping the country save lots of foreign exchange.

Despite facing delays since its announcement in 2013, activities at the plant had recently raised hopes of commencement of operations.
It was learnt that the refinery was wary of embarking on a start and stop operation because of how it would negatively impact the machines which need to run on schedule.
The Nigerian National Petroleum Company Limited (NNPC), holds a 20 per cent stake in the refinery and was reported to have struck an agreement to supply 6 million barrels of crude oil as feedstock.

With its strategic location and production plans, Dangote Refinery aims not only to transform Nigeria’s energy sector but also to solidify its position as a significant player in the West African region’s energy landscape.
As it inches closer to full-scale operations, the refinery’s impact on Nigeria’s energy security and global export potential has become increasingly imminent.
Earlier, a tanker chartered by the NNPC symbolised the initial crude supply to Dangote’s state-of-the-art refinery as it geared up to initiate production.

The owner, Dangote had earlier stated that the Dangote refinery, will fully come online with the refining of 650, 000 barrels per day by the end of 2024.
Dangote, in an interview in November, also said that the refinery would start with refining Nigerian crude, insisting that the refinery’s first priority is to supply petrol to Nigeria before exporting elsewhere, including the West African region.

“We don’t want to start our refinery with foreign goods, we want to start with the Nigerian crude,” he stated.
In September 2023, the refinery had announced that it will start producing diesel and kerosene in October 2023 and gasoline one month later.
In October, it was clear that the refinery would not yet be able to start operations because the supply of crude oil was stalling, which caused considerable public reaction.

About a week ago, Dangote refinery made a further move towards the commencement of production of refined petroleum products with the receipt of an additional 1 million barrels of bonny light crude supplied by the NNPC.

The crude from the Shell terminal via the MT Otis owned by Trafigura was the second consignment to be delivered to the Dangote facility out of the 6 million barrels of crude being expected by the world’s largest single-train refinery.
A week earlier, the refinery received 1 million barrels of Agbami crude grade from STASCO, one of the largest trading companies in Nigeria as well as globally, trading over 8 million barrels of crude oil per day.

Managing Director of Dangote Ports Operations, Mr Akin Omole told newsmen at the Dangote Quay, Ibeju-Lekki, Lagos, at the time that the refinery was expecting more crude before the end of the year to put the refinery in good stead to commence operation.