- Dangote Refinery is finally set to begin operations in the country after a long wait
- Biggest Refinery in Africa receives its first batch of crude feedstock on December 7
- The product is already being delivered in a land port close to Dangote’s offshore crude receiving terminal.
Finally, the first crude feedstock for the Dangote’s 650,000 b/d refinery has arrived in the country, according to SP Global quoting market sources and tanker tracking data.
The analytical firm confirmed that the development indicated that fuel production at the new $19 billion facility is finally set to begin after years of delay.
Dangote Group made known in a statement on Friday that the cargo of 1 million barrels of crude from Agbami – a deep water field run by Chevron (CVX.N) – was the first of 6 million barrels that would enable an initial run of the refinery.
This very supply will kick-start output of diesel, aviation fuel, and Liquefied Petroleum Gas before the refinery begins producing Premium Motor Spirit.
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More on Dangote Refinery’s Crude Arrival
A Dangote Group spokesperson, in an interview, said that the STASCO cargo arrived on a chartered vessel and was discharged into the refinery’s crude oil tanks.
According to the report; the OTIS tanker loaded a 950,000-barrel cargo of Agbami crude on the 6th of December 2023 and was discharged at the refinery’s terminal the next day Thursday 7th of December 2023.
The Suezmax tanker, chartered by the state-owned Nigerian National Petroleum Company, is the first of Dangote’s initial crude supplies as the giant new plant starts to ramp up operations, a West African oil trader said.
The Delay of Dangote Refinery: Highlights
The privately owned refinery (Dangote Refinery) was officially completed in May but has yet to make any oil products due to a lack of domestic crude feedstock.
The Dangote Refinery has been repeatedly delayed since the project was unveiled in 2013, although most of the key units were completely installed in 2019.
NNPC, which owns a 20 percent stake in the refinery, recently agreed to supply 6 million barrels of crude oil as feedstock to the refinery in December.
More highlights…
Operated by Chevron, Agbami is one of Nigeria‘s largest deepwater developments pumping about 100,000 b/d in the central Niger Delta.
Agbami produces light sweet crude with a gravity of 47.9 API and a sulfur content of 0.04 percent, according to Platts’ Periodic Table of Oil.
The crude is known in the market for yielding a large proportion of naphtha and kerosene.
NNPCL has chartered several other tankers to transport further crude shipments from offshore fields to the refinery later this month, the oil trader said.
“Our focus over the coming months is to ramp up the refinery to its full capacity,” – Quoted Dangote.
Nigeria commissioned the Dangote Refinery in May after it ran years behind schedule. Now, at a $19 billion cost, the massive petrochemical complex is one of Nigeria’s single largest investments.
Is Dangote Refinery the Largest Refinery in Africa?
The project has been praised as a major boost for the Nigerian economy and is expected to create thousands of jobs. It is also seen as a major step forward for Africa’s energy sector.
A total of 6 million barrels of crude is expected to be provided in the coming weeks, with NNPC delivering four cargoes and ExxonMobil supplying the final one.
This very collaboration is crucial for the refinery’s initial run and subsequent ramp-up to full capacity.
Dangote to list $20bn refinery on Nigerian Exchange, urges public to get ready!
Dangote disclosed his intention to list his 560,000-capacity refinery on the Nigerian Exchange Limited publicly.
The billionaire recently revealed this during an interview with the Financial Times, saying that the company has resolved issues about crude oil supply and is prepared for the listing.
The development aligns with Dangote’s more extensive business plans and could positively affect the company’s valuation and investor engagement.
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