The $20 billion Dangote refinery is set to begin refining fuel after receiving its first shipment of crude oil. Although there have been some delays since its commissioning in May due to hindrances faced in the supply of local crude, a milestone has been reached, and it is expected to significantly boost Nigeria’s oil sector.
The refinery had yesterday received a supply of crude from an oil conveying vehicle marking the commencement of fuel refining in the plant.
It is estimated that the Dangote refinery will provide about 12 of Africa’s petroleum products needs, and reduce further imports by 36%.
The commencement of production is expected to attract a hundred thousand jobs in the county as well as boost the plastics and cosmetics industry.
Dangote refinery has collaborated with NNPC to receive 6m barrels of crude supply to the refinery this December.
The refinery is expected to receive further crude oil supplies from other offshore oil rigs in the country through support from NNPC.
The refinery is expected to produce more than three hundred thousand barrels of gasoline per day (BPD), two hundred and forty-four thousand barrels of gas oil/diesel per day, fifty-six thousand barrels of jet/kerosene per day (BOPD), and close to three hundred thousand barrels per day (LPG) per year.
This major development is expected to revolutionize Nigeria’s oil industry. Dangote officials anticipate an initial production capacity of 370,000 BPD.
The refinery also plans on jet and diesel production, but industry analysts predict that the refinery will reach full operational capacity by mid-2025 at the latest.
Dangote previously stated in an interview that the refinery will initially focus on refining Nigerian crude to supply Nigeria before exporting elsewhere.