The Dangote Refinery is set to disrupt the longstanding Europe-to-Africa fuel trade and reduce Nigeria’s dependence on imported refined products.
As the world’s largest single-train refinery, Dangote Refinery has begun test runs for producing Premium Motor Spirit (PMS), commonly known as petrol, according to a Reuters report citing industry monitor IIR Energy.
The 650,000-barrel-per-day refinery is anticipated to commence full operations and start petrol distribution by mid-September, following several missed deadlines.
The $20 billion facility, constructed by Africa’s richest man, Aliko Dangote, has so far only produced diesel and other distilled fuels.
Initial projections had aimed for petrol deliveries to begin in May, but this was delayed. Subsequent rollout dates in July and August were also missed due to supply issues with crude oil.
IIR Energy has indicated that further delays are possible. Once operational, the Dangote Refinery is expected to revolutionize the fuel trade by reducing Nigeria’s reliance on imported refined products.
Government Moves to Ensure Crude Supply for Dangote Refinery
This development follows a Federal Government committee’s agreement with Dangote Petroleum Refinery to commence petrol distribution in September.
The Federal Government has announced plans to begin selling crude oil to Dangote Refinery and other local refineries from October 1, 2024.
During a recent meeting in Abuja, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, revealed that the first petrol deliveries from Dangote are expected next month under existing agreements.
Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service and Chairman of the Technical Sub-Committee, confirmed the timeline for the initial petrol rollout.
