By Milcah Tanimu
The Dangote Oil Refinery has reaffirmed its plan to begin petrol supply in July 2024, as previously announced. Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, provided this update during a visit by officials from S&P Global over the weekend, reports Naija News.
Edwin emphasized the company’s commitment to fostering industrial growth, employment, and economic prosperity by leveraging Africa’s abundant crude oil reserves for local production of refined goods. He confirmed that the refinery is on track to start producing Premium Motor Spirit (PMS), commonly known as petrol, this month as promised.
He assured that the products from the refinery would be of superior quality, meeting global standards, and capable of satisfying Nigeria’s entire demand for petrol, diesel, kerosene, and aviation fuel, with surplus available for export.
S&P Global highlighted that the Dangote refinery has the potential to address Nigeria’s foreign exchange issues by reducing the need for fuel imports, which significantly impact the local currency’s value. The global rating agency’s team, joined by representatives from the Federal Ministry of Finance, toured the Dangote Refinery in Ibeju-Lekki, Lagos, as part of its assessment of Nigeria’s sovereign credit ratings.
Ravi Bhatia, Director and Lead Analyst for Sovereign and International Public Finance Ratings at S&P Global Ratings, led the visit and stated that the Dangote refinery could transform Nigeria into a net exporter of petroleum products, boosting the country’s revenue and easing foreign exchange reserves pressure.
Bhatia remarked, “It is a very impressive facility, able to process 650,000 barrels a day when at full capacity. It is the largest single-train refinery complex in the world. Nigeria is a big exporter of crude but has issues with importing refined fuels. Refining crude in Nigeria can save money and foreign exchange, which will be positive for the economy in the medium term.”
The S&P team praised Aliko Dangote, President of Dangote Industries Limited, for incorporating advanced technologies and quality control measures, such as a state-of-the-art Central Control Unit, to ensure smooth automation of operations.
Edwin mentioned that the refinery, currently operating at a capacity of 350,000 barrels per day, is scheduled to increase to a minimum of 500,000 barrels per day by July/August, starting the production of petrol and ultra-low sulfur diesel. He highlighted that the refinery, designed to process various crudes including African and Middle Eastern crudes, as well as US Light Oil, meets Euro V specifications and complies with US EPA, European Union emission norms, Department of Petroleum Resources emission/effluent norms, and African Refiners and Distribution Association standards.
He expressed pride in a Nigerian company designing and building the world’s largest single-train refinery complex, serving as its own Engineering, Procurement, and Construction (EPC) contractor. The refinery also includes a self-sufficient marine facility capable of accommodating the world’s largest vessels.
“The refinery can produce the best quality products in the world, Euro V grade. It is one of the energy-efficient refineries and is highly environmentally friendly. It is sophisticated with a high level of automation. The largest single-train refinery in the world is 100 percent designed, engineered, and constructed by a Nigerian company as an EPC contractor,” he said.
